By IFCMarkets
Investors overestimate the possible reduction in global oil demand
Earlier, Brent prices fell 5 weeks in a row, as the coronavirus infection and its subsequent quarantine reduced oil demand in China. The International Energy Agency (IEA) estimated the decline in global demand by only 435 thousand barrels per day in the first quarter of 2020. This is not that much amid world consumption of about 101 million barrels per day. Let us note that even if demand falls, OPEC and independent oil producers are ready to cut production by 600 thousand barrels per day. This will be an additional volume to the already existing production limit of 1.7 million barrels per day. The World Health Organization said that an increase in the number of infected people with coronavirus in China is due to a change in methods of calculation and may not be a sign of deterioration of the situation.
| Indicator | VALUE | Signal |
|---|---|---|
| RSI | Buy | |
| MACD | Buy | |
| Fractals | Buy | |
| MA(200) | Neutral | |
| Bollinger Bands | Neutral | |
| Parabolic SAR | Buy |
Summary of technical analysis
| Order | Buy |
| Buy stop | Above 57.5 |
| Stop loss | Below 53.2 |
Market Analysis provided by IFCMarkets
