Crude prices, including Brent, remain under pressure amid projections of potential OPEC+ production increases. Traders expect the group to boost oil output in order to regain its previous market share lost to American shale companies in recent years. Eight OPEC+ members are scheduled to meet on Sunday to decide whether to raise production volumes in October or not.
If the group, which accounts for roughly half of the world's oil production, chooses to increase output again, it would roll back its second-phase cuts of 1.65 million barrels per day (bpd), or 1.6% of global demand, more than a year ahead of schedule.
Meanwhile, US crude oil inventories rose by 2.4 million barrels last week, the Energy Information Administration reported on Thursday, contradicting forecasts for a 2 million barrel draw. In recent months, a key factor supporting oil prices has been the resilience of the refining sector, but corporate margins are likely to contract in the near term as global demand growth slows and plants undergo seasonal maintenance. This, consequently, may reduce fuel throughput and lower crude consumption.
The overall recommendation is to sell Brent from the level of $67.1. Profits should be taken at $66.1. Stop Loss could be set at $67.5.
The volume of the open position should be calculated so that the potential loss (protected by a Stop Loss order) does not exceed 1% of your deposit. If your account balance does not allow opening a position of this size, it is better to avoid entering the market on this signal and wait for other trade options that meet low-risk criteria.
This content is for informational purposes only and is not intended to be investing advice.
