Profit-taking and high US exports have lowered oil. What are the prospects?

Oil has fallen and wiped out profits over the past four days, as traders have chosen to reap gains after mounting tensions in Iraq. Gold futures declined 1.7% after the surplus last week. Gasoline stocks in the US rose and fuel supplies rose for the first time since August. On a large scale, US oil stocks fell by 5m barrels, but the country's exports rose close to record-breaking levels previously recorded - 1,798m. barrels.

In support of the raw material, OPEC sent a strong signal to expand production cuts by the end of 2018. The Alliance said the next meeting would be focused on Vladimir Putin's attempt to extend the cut-off program for another nine months. The goal is OPEC and producer countries to counteract the US and the shale revolution that suppresses black gold prices. The question is how long the economies of the producing countries can withstand this pressure.

The increased exports and the unclear future around the agreement between the OPEC countries will continue to suppress the price of oil and this gives us a good opportunity for short-term Short.

Technically, it is clear that the levels of around $53 per barrel are difficult to overcome, and after the formation of a lower peak over the past few days and the strong downward impulse, the probability of observing a decrease is greater. In addition, the price is on a horizontal resistance formed by the medium range, which coincides with 61.8% Fibonacci correction.

If the negative foundation around black gold stays, the levels around $48 will be the first stronger support level.

A deal from the current levels would be useful with a far-off stop at around $53.40.

Source: Bloomberg Pro Terminal

Jr Trader Petar Milanov

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