The price of oil on world markets increased sharply in mid-September after reports of attacks on refineries owned by the state giant Saudi Aramco, which led to a decrease in world production by about 5 percent overnight. It was also then considered when oil production would return to pre-attack levels and what protection of oil infrastructure facilities would look like.
Saudi Arabia is very quickly coping with the effects of attacks that have been carried out, including to the largest refinery in the world. The Sauds assumed that they would be able to restore full production by the end of September. Keeping this deadline is not so certain, but progress in resuming production is visible. According to news agencies, Saudi Aramco restores most refineries to full production after its previous reduction. The return of supply to the market seems to affect the oil market, which has fallen to USD 58 per barrel of WTI. In addition, stockpiles data that will be released today on September 24 are expected to show a fall in US stocks by 600,000 barrels.
Nevertheless, September for oil may be the month with the largest price increase since June after the US, France and the United Kingdom accused Iran of attacking and the Americans increased their military involvement in Saudi Arabia. In addition to what has happened recently in the past, the possible escalation of the conflict in the Middle East is also important, because after attacks on tankers, oil pipelines and now on the refinery, further strikes are not excluded. This causes increased uncertainty in the oil market.
Oil WTI daily chart. Conotoxia trading platform
From the chart point of view, significant support for the price of WTI oil seems to be around the levels of 58 USD and 56.77 USD, where previously the price marked local resistance points. In the current situation, it seems that the price of oil may still be at relatively high levels, since all risks have not yet been addressed.
Daniel Kostecki, Chief Analyst of Conotoxia Ltd., a company from the group to which Cinkciarz.pl Sp. z o.o. belongs
Materials, analysis and opinions contained, referenced or provided herein are intended solely for informational and educational purposes. Personal Opinion of the author does not represent and should not be constructed as a statement or an investment advice made by Conotoxia Ltd. All indiscriminate reliance on illustrative or informational materials may lead to losses. Past performance is not a reliable indicator of future results.
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