Trading in oil prices started this morning with a slight decline over short time intervals, affected by the weak data for Chinese trade, which reinforced concerns about slowing demand from the largest oil importer in the world, which overshadowed concerns about reducing global supply after Saudi Arabia and Russia intended to continue the voluntary reduction of production on Throughout September, Brent crude futures fell by 0.18% this morning, to record a price of $84.64 a barrel, while West Texas Intermediate crude recorded $82.72 a barrel, but these losses did not extend to oil, futures contracts soon returned to consolidate the weekly gains.
Brent crude futures returned to trading above $86 barrel, stable near their highest levels in four months, as the growing conflict in Ukraine raised fears of further supply disruptions. Where The Ukrainian President ‘Volodymyr’ said that his country will take action if Russia continues to close the Ukrainian ports, prompting traders to raise oil prices after a decline during early trading on oil. Saudi Arabia also confirmed yesterday its commitment to extending voluntary production cuts until September. Saudi Arabia said last week that it would extend its production cut of one million barrels per day until September and possibly beyond, while Russia said it would cut its oil exports by 300,000 barrels per day next month, while the US Energy Information Administration lowered its forecast for US consumption this year.
Looking at the movement of oil prices on the charts, we find that the black gold continued to rise during the day within the bullish trend prevailing over it over the medium-term intervals, continuing to move through the price channel that it established since the end of June of the current year, trading above the middle line of that price channel now, and concentrating at Its rise at the lower end of that price channel and also receiving payment from the moving averages for a period of 20, 50 days, to settle in the highest trading since the end of trading yesterday, Tuesday, so it is likely that Brent crude will head to record levels of $ 84.85 a barrel later this week, driven by purchasing power. On momentum indicators, the price is likely to bounce around those levels to the downside again.
