[KostiaFM]

Brent. October 19, 2020 – Oil fixed at comfortable levels

Brent oil prices have consolidated above $42 per barrel. The current quotation of the asset is $42.77.

Today, markets are focused on the meeting of the OPEC + ministerial monitoring committee. The parties to the agreement will meet to assess the state of the market, and it is unlikely that any decisions will be made regarding the supply. This will most likely happen at a meeting scheduled for November 30 – December 1.

One of the scenarios for the forthcoming report assumes that the oil market in 2021 will be characterized by weak demand and growing supply. For this reason, the participants in the energy pact can discuss easing the restrictions from January 1.

Thus, if a gradual increase in oil production by OPEC + countries against the backdrop of weak demand and an increase in production in Libya is questionable, the initiative on the oil market will finally go to buyers, which will allow Brent quotes to gain a foothold above $43.50 per barrel.