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Old 18-02-2021, 17:41
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KostiaFM KostiaFM is offline
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Default Re: Daily Market Analysis by ForexMart

February 18 | Fundamental analysis of oil market

Brent quotes continue to renew multi-month highs: on Thursday, the asset quotes reached $65.40 per barrel. The last time at such marks the price of oil was in January 2020. The current Brent quote is $64.70.

The abnormal cold in Texas, which led to the suspension of the operation of several oil platforms, continues to contribute to the rise in prices. As a result, oil production in the United States fell by 2.6 million barrels per day. Combined with optimism about the rapid spread of vaccines in the world and a decrease in the number of coronavirus cases, this will lead to the fact that the bullish rally in oil prices will continue in the near future.

An additional local factor in the growth of Brent quotes was a report from the American Petroleum Institute (API), according to which US oil reserves fell by 5.8 million barrels over the week. Today you should pay attention to similar statistics from the Energy Information Administration (EIA) of the US Department of Energy. Analysts predict a decline in US oil reserves by 2 million barrels.

However, there are also risks. Experts note that the current rise in prices may lead to a revision of the terms of the OPEC+ deal at a meeting on March 3-4. It is also expected that Saudi Arabia may announce the cancellation of the unilateral production cut of 1 million barrels per day during February and March. In this scenario, the oil market may face a deep correction.
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