Oil started the week with a good growth. However, experts say that it is not worth waiting for a serious move, because the market has already been oversold.
During the six sessions, we all have been watching the fall of the WTI and Brent benchmarks, which eventually have fallen by 6% and 5%, respectively. The oil market has not experienced such a fall for more than 3 years.
The January contracts of Brent have risen today by 0.8% to the value of $ 67.3 per barrel. December WTI futures have grown by 0.7% to $ 57.1 per barrel.
Analysts say that the resumption of deliveries from Kirkuk province over the weekend has broken the trend in the market. Nevertheless, investors are still afraid of the situation when there is a supply growth at the time of the demand reduction.
Experts believe that the minimum price level has already been passed, and now it will remain in a small range.
The representatives of Bank of America Merrill Lynch note that during a bearish trend, the market cleared of long positions. At the same time, oil reserves are not very large. This may have a positive effect on price movements.
The material was prepared with the participation of Anjela Chromova,
a leading analyst of the brokerage company CT Trade