Today, the binary market experts have made a report on the state of the oil market, which takes into account the impact that the raw materials supply from Canada has on the USA terminals. Given the fact that the oil quotations and related products have been appreciated in the course of trading in the APR, we have tried to figure out exactly how traders should build their strategy at the moment. The beginning traders should need to know that the "black gold" market is currently under serious pressure of the OPEC cartel, which intends to create a situation in which oil prices would return to the level of 2013, using an Agreement to reduce production (Oil Cut Deal) for this purpose.

At the time of the trading platforms closure in the Asia-Pacific region, futures contracts for the North Sea Brent Crude Oil have reached a mark of $ 63.06 per barrel, which means an appreciation by 0.78% compared to the Tuesday’s results. The futures for the US Light Brand WTI Crude Oil have been strengthened to the level of $ 57.68 per barrel, gaining 1.5% since the opening of the stock exchange.

WTI Crude Oil (Nymex)

Brent Crude (ICE)

The experts explain this sharp appreciation in quotations by the problems on the Keystone pipeline, which pumps up to 590,000 barrels every 24 hours from Canada to the American terminals. At the moment, the crude oil transportation through the pipeline hardly reaches 15% of the declared capacity, as leaks have been recorded. This has led to the fact that the oil volume in the US storehouses has fallen to the record levels, which the analysts could not foresee. If you believe the unofficial reports of the API, the inventories have been declined by 6.4 million barrels, to 455.4 million by the end of last week. The analytical services calculations of the largest financial publications have expected the reduction of oil reserves by only 1.5 million barrels.

The experienced investors believe that oil quotations will be fully dependent on the results of the Vienna OPEC + 11 summit now, which, apparently, will decide on extending the terms of the pact (Oil Cut Deal) until the end of next year. In addition, it is likely that the summit will address issues regarding Libya and Nigeria, as well as the situation in Venezuela.

The influential experts from major international financial organizations point out that the oil market state is directly dependent on Saudi Arabia's ability to achieve OPEC + 11 extension of the terms of the contract on limiting the raw materials extraction (Oil Cut Deal). If there is no consensus, the market will quickly become oversaturated due to increased production in the US and Iran. The analysts believe that the average price for a barrel of the North Sea Brent Crude Oil will be $ 58 next year, while a barrel of the US WTI Crude Oil will be trade on average for $ 54.6.

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