Baku, Azerbaijan, Nov. 13
By Taleh Mursagulov - Trend:
If the price of Brent benchmark crude oil remains below $73 per barrel, the possibility of further decrease will increase, reads the daily report of the Azerbaijani investment company InvestAZ.
It is noted that there is a downward trend on the hourly chart.
The company’s analysts believe that if the oil price breaks through the level of $69.11 in a downward direction, further reduction in price to $66.7 and $63.16 is possible.
Alternatively, analysts expect that if the price breaks through the level of $73.05 in the upward direction, the price will reach the target of $74.94 and $78.
As of 14:17 (GMT +5) on Nov. 12, the price of Brent crude oil was $71.17 per barrel.
Benchmark crude oil prices on Nov. 12 rose after Saudi Arabia announced its intention to cut exports by 500,000 barrels per day next month, Dow Jones reported.
ICE January futures for Brent crude on the London Stock Exchange as of Nov. 12 morning rose by $1.13 (1.61 percent), to $71.31 per barrel. At the trading on the previous day, their price dropped by $0.47 (0.67 percent) and was $70.18 per barrel.
WTI December futures as of Nov. 12 morning rose by $0.68 (1.13 percent) to $60.87 per barrel. At the end of the last session, their price dropped by $0.48 (0.79 percent), ending the day at around $60.19.
Last week, WTI prices entered bear market after they completed ten consecutive tradings in the red, which didn’t happen since 1984. At the same time, both brands dropped by the end of the fifth week, which is a record in almost four years.
OPEC countries will cut production in case of a sustained surplus of oil on the market, Saudi Arabia’s Energy Minister Khalid al-Falih told reporters before the meeting of the OPEC Ministerial Monitoring Committee. He said that there are currently signs of excess US oil on the market.
At the same time, he stressed that OPEC+ countries wouldn’t like to reduce oil production.
Following the meeting of the committee, al-Falih said that the volume of oil production by OPEC+ in December will be lower than in November.
He noted that Saudi Arabia will retain its leading position. He added that the country received applications for oil supplies in December by 500,000 barrels per day less than in the current month. The level of oil supplies from the country in November is expected to be higher than last month, he said.
He stressed that if a decision is made to reduce production, the starting point will be the current level of oil production. At the same time, the OPEC+ Committee appealed to the countries that were exempt from the current transaction, with a proposal to join the new agreement, he said.
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