20.08.201901:23 Forex Analysis & Reviews: On the positive: oil starts the week with growth

Earlier this week, oil quotes showed an upward turn during the Asian session. According to analysts, such growth occurred for the first time in the past seven weeks.

On Monday, August 19, quotes for September futures for the WTI light variety rose 0.97% to $55.40 per barrel, while the Brent brand rose 1.06% to $59.26 per barrel.

According to analysts, two factors provide significant support for black gold prices: the escalation of geopolitical tensions in the Middle East due to damage to the oil infrastructure in Saudi Arabia and the progress in US-Chinese trade negotiations. Recall that tensions in the Middle East provoked the actions of the Yemeni separatists, who attacked an oil factory in Saudi Arabia with the help of drones.

Many analysts are confident that the rise in oil prices in the near future is unlikely due to weak growth in demand. Pressure on the black gold market is also exerted by current OPEC forecasts. The department emphasizes that in 2019, the growth in world oil demand was 40 thousand barrels per day less than previous forecasts. According to experts, it will amount to 1.1 million barrels per day.

In 2020, a slight excess of demand over supply is expected, representatives of the cartel said. Analysts consider this observation to be very important, since OPEC very rarely gives "bearish" forecasts for the oil market.