Brent Is Bound To Rise
After the OPEC meeting in Saint Petersburg, hopes for meeting a balance of supply and demand have grown significantly. Saudi Arabia is planning to reduce oil exports in August. Nigeria may join the agreement on an oil-production cut.
The US data also supports the further rise in Brent as API’s Weekly Crude Oil Stock fell 10.230 M and EIA Crude Oil Inventories fell by 7.208 M barrels, significantly beating expectations and confirming the rising demand on gas during the driving season.
The nearest week may bring another confirmation of the evolving trend. If Baker Hughes data shows another slide in oil-rig count, it may speed up Brent’s rise. The nearest target for Brent is 52.60 followed by 55.00.