The first news from Brent oil market is a bit horizontal regarding to February 2017. Nowadays, the oil market is pricing the decision of OPEC about limitation of oil production in the biggest producers. Of course, application of the decision is so important. The community has started to take first feedbacks about applying this decision at the last days. So, the first news are positive. The International Energy Agency (IEA) predicts an increase in oil demand in line with global economic growth in 2017. Undoubtedly, if the demand increases in a way that the demand side expects, the issue of whether OPEC countries do not fit into the black is losing importance.
On the demand side, China was an important player in 2016. The official energy bodies accelerated their stock buying activities knowing that affordable prices were an opportunity. It was also a demand for independent refiners called teapots. These refineries imported imported oil with government incentives. These refineries, which import and export as refined products, are said to be the most important development in global energy markets after the US rock gas revolution. However, the measures taken by the Chinese government and the independent referees have the potential to be dropped. Declining demand on the Chinese side in 2017 is not seen as good news for OPEC. When we look at the technical side of Brent oil prices, movements continue in the lower channel in the descending channel. If Brent oil, which is approaching the upper end of the descending channel at 56.10 USD, does not get above this level, the risk of a return may increase. Although the movements are taking place in the downward direction, the outlook is not negative.
Resistance levels : 55.80 / 56.10 / 56.50 Support levels: 55.30 / 54.90 / 54.40
- Date: 26 January 2017 Thu 10:18
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