This week's OPEC meeting may mark the price's future in the short term
If last month we commented on the positive report for the future by OPEC, in which it estimated an increase of 1.4 million barrels per day for the next year 2022 by each member of the group, during the sessions of yesterday and today, OPEC and its allies are holding a meeting in search of an agreement in view of a possible increase in production during the coming months.
Initially, the OPEC+ meetings led by Russia and Saudi Arabia appear to show a modest increase in production that could reach 2 million barrels per day between the months of August and December. This meeting is very important because an insufficient agreement, or a very modest agreement, could harm the price in the short term by cutting the euphoria of the markets in the face of the increase in demand, since this could be insufficient.
After the positive report in June, the price of a barrel of Brent rose by 8.38% throughout the month, causing the price to stabilize at around $75 per barrel.
Technically speaking, if we look at the weekly chart, we can see how during this week the price has managed to overcome its important long downtrend line to the upside, so if this breakout is sustained over time, the price could experience a strong upward momentum that could take it in the first place to $80 per barrel or even to levels close to $87.
On the contrary, we can observe that the price is trading far from its moving averages and presents a strong overbought in its stochastic indicator, so we must also be attentive to a possible correction.
Evolution in the last 5 years:
- 2020: -21.52%
- 2019: 22.68%
- 2018: -19.55%
- 2017: 17.69%
- 2016: 52.41%
With the Admirals Trade.MT5 account, you can trade Gold Contracts for Differences (CFDs) on Brent and more than 3000 stocks! CFDs allow traders to try to profit from the bull and bear markets, as well as the use of leverage. Click on the following banner to open an account today:
INFORMATION ABOUT ANALYTICAL MATERIALS:
The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admiral Markets investment firms operating under the Admiral Markets trademark (hereinafter “Admiral Markets”) Before making any investment decisions please pay close attention to the following:
- This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
- Any investment decision is made by each client alone whereas Admiral Markets shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
- With view to protecting the interests of our clients and the objectivity of the Analysis, Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.
- The Analysis is prepared by an independent analyst, Roberto Rojas (analyst), (hereinafter “Author”) based on their personal estimations.
- Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis.
- Any kind of past or modeled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
- Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.
