Brent oil is reported to have dropped below 39 dollars per barrel on Friday. This is the first time the price has gone that low over the last 7 years, Masterforex-V Academy reports. Therefore, over the week following the latest OPEC summit, the price dropped 10% down. The thing is that OPEC is not going to cut its oil production in the near future and decided to postpone the solution till the next summit in mid 2016. Apparently, this fact is going to press the market harder and harder over the time.
At the same time, some sources report that OPEC actually increased its oil production by 230 000 barrels a day up to 31,7 million barrels a day, mainly at the expense of bigger production in Iraq.
Meanwhile, WTI oil depreciated down to $36,5 per barrel over the same period. The tendency is clearly triggered by a huge oversupply of crude oil currently seen in the global market, which causes an imbalance and presses oil prices even harder than before. Still, the IEA predicts that the global demand for crude oil is going to shrink in the coming months, which is another bearish actor for the market. They also expect the demand to be relatively low throughout 2016. By the way, when Iran is coming back to the international market with its abundant supply of crude oil, this may trigger an even sharper price drop. Some experts don’t deny the chances of seeing oil prices around $20/b.
In the meantime, the SRP Department of Masterforex-V Academy has analyzed the Brent oil chart. The analysis was performed with the help of the SRP tool, which is an exclusive tool developed there. This helped the experts to figure out that wave C inside the bearish ABC pattern of level H4 is still in progress. The next target inside the pattern is 34.07.
