Oil prices decline on Tuesday 19 August after analytics famous investment bank Goldman Sachs said they expected a drop in prices from the current relatively high levels due to continuing market imbalance between supply and demand.
Nevertheless, the imbalance between supply and demand is not so obvious as it was in late 2014. The growth rate of production in the United States in fact already cleared. When using the technology of hydraulic fracturing and horizontal drilling, which lie at the heart of the oil shale production wells are in operation for six months to a year. Given that the number of drilling rigs operating in the last six months has fallen by half, after a maximum of six months, production in the US is already begins to fall.
Accordingly, prices are unlikely to fall much from current levels and could be interesting to find long positions near the important technical support levels.
|Oil Brent chart|
Support and resistance levels
Support 1 65,15
Support 2 64,15
Current price: 65,61
Resistance 1 66,45
Resistance 2 67,38
Oil Brent (BRN) – buy oil – Purchases with a view to 66.45 or 67.38. Stop-Loss = 65,15
Warning: Profitability in the past does not mean profitability in the future. Any projections are for informational purposes and do not guarantee the results obtained.