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Oil market looks positive

Jul 31 2017, 04:03 PM (+06) | Fortfs.com

Brent crude oil has reached new highs since the end of May amid signals of a further production cuts in the market, price is approaching the level of $ 53. Today, the focus of oil market is forwarded towards United States plans to impose sanctions against the Venezuelan oil sector because of "fake" elections to the national constituent assembly.

Reuter’s sources do not expect the harshest option - a ban on the supply of Venezuelan oil to the United States. However, sanctions may include blocking sales of light American oil, which Venezuela mixes with its heavy, and then exports.

Earlier, oil prices received strong support after the OPEC  meeting in St. Petersburg on July 24. Since then, Brent grew by 10%. After the meeting, Saudi Arabia said that in August it would reduce exports by 1 million barrels a day. Nigeria promised to limit production at 1.8 million b barrel a day. In addition, last week there were statistics showing a decline in reserves and production levels in the US.

From a technical point of view, Brent have almost reached level - $ 53. However, resistance that is more significant is expected in the region of $ 54.5-55. Here the May high is located, as well as the diagonal level, coming from the highs of 2016.

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