Investors and traders in the oil market expect an increase in supply from Libya as well as from the broader group of OPEC+ oil exporters.
It's worth mentioning that until yesterday, Libya's oil production and exports were curtailed, with crude oil exports reduced to 400,000 barrels per day (b/d) from over 1 million barrels last month. These restrictions have now been lifted.
This could result in more than 500,000 b/d of Libyan crude oil returning to markets.
In addition, the Organization of Petroleum Exporting Countries (OPEC), which has cut oil production by a total of 5.86 million bpd so far, is currently planning to resume producing additional 180,000 bpd of those cuts in December.
The media report claims that this reversal is driven by Saudi Arabia's decision to abandon its $100 oil price target and increase its market share.
Saudi Arabia, the de facto leader of OPEC, has repeatedly denied having a specific oil price target, and yesterday's decision to increase its market share confirmed that.
Now, Brent prices have already been partially affected by this news, but it is likely that from a technical point of view, the price of Brent will try to update its local minimum and fall below the level of 68.0.
The final recommendation is a short-term sale of Brent oil, and it is better to enter the transaction with a pending order after a probable price correction up to the level of 72.4.
The profit is taken at the level of 67.3. The loss is fixed at the level of 75.0.
The volume of the opened position should be defined in such a way that the value of the possible loss, fixed with the help of a protective stop order, amounts to no more than 2% of the size of your deposit funds.
This content is for informational purposes only and is not intended to be investing advice.
