If last month we commented on the positive report for the future of OPEC, in which it estimated an increase of 1.4 million barrels per day for the coming year 2022 by each member of the group, during the sessions of yesterday and today, OPEC and its allies hold a meeting seeking an agreement considering a possible increase in production over the coming months.
Initially, the OPEC + meetings led by Russia and Saudi Arabia appear to show modest growth in production, which could reach 2 million barrels per day between August and December. This meeting is very important because an insufficient agreement or a very modest agreement could damage the price in the short term, cutting the euphoria of the markets before the growth of demand, as this could be insufficient.
After the positive report in June, the price of a barrel of Brent grew by 8.38% over the entire month, causing a stabilization of the price by about $ 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 major long downtrend line to the top, so if this boom continues over time, the price could experience a strong upward momentum. that could bring it first to $ 80 a barrel or even to levels close to $ 87.
Conversely, we can observe that the price is trading away from its moving averages and presents a strong overbought in its stochastic indicator, so we must also be careful about a possible correction.
Source: Admiral Markets MetaTrader 5. Weekly brent chart. Data range: 23 November 2014 to 2 July 2021. Prepared on 2 July 2021 at 12:30 pm CEST. Please note that past returns do not guarantee future returns.
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) at Brent and over 3000 shares! CFDs allow traders to try to profit from the bull and bear markets, as well as through the use of leverage. Click the following banner to open an account today:
INFORMATION ON ANALYTICAL MATERIALS:
The data provided provides additional information on all analyzes, estimates, forecasts, forecasts, market reviews, weekly prospects or other similar estimates or information (hereinafter “Analysis”) published on the websites of Admiral Markets investment firms that operate under the Admiral Markets trademark (hereinafter “Admiral Markets”) Before making any investment decisions, please note this:
- This is marketing communication. The content is published for informational purposes only and is in no way construed as investment advice or recommendations. It has not been prepared in accordance with legal requirements intended to promote the independence of investment research, and that it is not subject to a prohibition to deal with prior to dissemination of investment research.
- Each investment decision is made by each customer solely while Admiral Markets will not be liable for any loss or damage resulting from such decision, whether on the basis or not of the content.
- In order to protect the interests of our clients and the objectivity of the Analysis, Admiral Markets has established such internal procedures for the prevention and management of conflicts of interest.
- The Analysis is prepared by an independent analyst, Roberto Rojas (analyst), (hereinafter “Author”) based on their personal assessments.
- While every reasonable effort is made to ensure that all sources of the content are reliable and that all information is presented, as far as possible, in an understandable, timely, accurate and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any. information contained in the Analysis.
- Any kind of past or model performance of financial instruments indicated in the content shall not be construed as an explicit or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument can both increase and decrease and the preservation of the asset value is not guaranteed.
- Income products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please make sure you fully understand the risks.