Black Pipper

Forex Dreamers

Brent: oil has exhausted growth potential

A report on US oil reserves from the Energy Security Administration showed mixed statistics, which cast doubt on the hypothesis of strong growth in energy demand.

On the one hand, oil reserves decreased by 3.522 million barrels against the forecast of a decrease of 1.436 million. On the other hand, gasoline reserves increased by 4.044 million barrels at once, while a decrease of 0.221 million barrels was expected.

This trend could reduce the capacity of refineries, which are currently loaded by 84%.

In addition, the market is watching the negotiations on a nuclear deal with Iran, and if the parties manage to agree, the oil embargo will be lifted, which means that, given the existing demand, there will be more sellers.

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In the medium term, the outlook for oil prices is negative. We consider any growth in Brent for the sale of an asset and write it in trader’s trading plan pending sell order

Sell-limit 64.20 take-profit 60.60 stop-loss 65.40.

Brent

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