Trump wants to drop oil price
Brent crude oil finished another unsuccessful attempt to reach the level of $78 to boost profit-taking current days. Markets of crude oil in general looks healthy, however some short-term analytical data emphasize the anxious and unstable behavior of investors.
One of the clues of such an variable dynamics and the absence of a bullish stimulus are tweets of Donald Trump concerning the oil market. The president of the United States looked serious enough when he addressed OPEC demanding to drop prices for oil. Ambitious and threatening US pressure on the cartel undermines bulls’ incentives to raise the oil price. It happens because of growing concerns that several oil miners will do their best to boost output against the background of global market rebalance.
However, Brent keeps floating around 3.5-year highest rates because of decreasing oil production in Venezuela and sanctions that US plans to introduce on the export of Iranian oil.
In the near future traders are likely to stay focused on recent EIA indicators. If the report indicates inventories decline again and another layoff in production of shale, the prices are likely to return to the level of $78. Nevertheless, it’s important to remember that Brent is still sensitive to the growing oil production by OPEC.