For the first time for almost seven months the world’s oil prices have risen above 50 dollars per barrel, which concerns a model grade for Europe - Brent, as well as American oil WTI. In January Brent has reached its bottom point – 27.10 dollars per barrel.
Traders’ spirit has been influenced by reduction of raw materials recovery in Canada due to forest fires, as well as in Libya and Nigeria due to turmoil; thus, total incoming of fuel to the market has decrease by 4 million barrels per day. Besides, last week stocks of petroleum in the USA reduced more than expected.
50 dollars per barrel is considered to be an important psychologically point, for experts suppose that American manufacturers of shale petroleum, which have wound up some part of their production due to price collapse, may return to the market.
Meanwhile, more and more experts claim that the balance between supply and demand has been reached. Thus, in mid May American bank Goldman Sachs has stated that oversupply, which has lasted for almost two years, has disappeared. Experts of Masterforex-V Academy have “calculated” that the volume of new reserves of petroleum explored in 2015 dropped to the lowest point since 1952 due to reduction of investment in geologic exploration, as a result drop of prices for oil. Though, in their opinion, this will not lead to deficit of fuel.
Meanwhile, at Forex BRENT instrument continues rising in relation to American dollar. The daily chart shows a rising АВС structure with impulse nature of movement; its next target is point 52.85. Can we say that “BRENT has changed its trend” (WTI and others as well)? The intrigue lies in the question whether this rising wave truly is wave A, but not wave C within intricate correction of a higher level, which is also getting closer to its target – point 51.90? In the first case we truly observe a reversal trend from a minimal point, whereas in the second case – this simply is a correction for a long-term down-trend.
“This and other information on behaviour of any instruments at Forex can be seen on charts with the help of tools, provided by the SEP,” highlight traders of the System of Early Prediction Department at Masterforex-V Academy (AO_Zotik and WPR_VSmark).
