The price of crude oil Brent continued to decline. The main pressure on the price is exerted by the strong American dollar, which is growing largely due to the decrease in the yield on German bonds. According to experts, quantitative stimulus, implemented by European Central Bank could have been the reason for the decrease in the price of German government bonds. However, if the threat of exit of some countries from European Union would become a reality, German bond yields will grow, as they are considered a reliable investment.
The second factor having a negative impact on the oil prices is the positions of Saudi Arabia and OPEC countries, which do not wish to reduce oil production, allowing the market to determine exchange price.
Additional negative factor for the oil market can be the lifting of the sanctions on Iran, as this country is planning to restore the volumes of exports and oil production. Experts believe that amid this fact price of oil will drop below the level of $60 per barrel and later, it can reach the level of $57-56 per barrel. Therefore, uptrend is not expected in the next few months.
The nearest resistance is the price level of 64.84 – 3/8 Murray.
Support level: 64.06 – 2/8 Murray.