Brent price is at important support

On Thursday, June 30, according to the results of the day, Brent crude oil fell by 5.56%, to $109.23. The price lowered after the decision of OPEC + to leave oil production in August at 648 thousand barrels per day. Although it is a little strange that the price fell by 5% against the backdrop of a depreciating dollar and growing stock indices.

The OPEC+ decision was expected. Oil production in Russia has recovered to 9.9 million barrels per day. Russian oil is reoriented to Asia and is well bought. The Alliance considered that the market was balanced, so they refused to increase production.

The price has been consolidating for a long time in a wide price range of $97-$133, which narrowed to $108-$125 barrels. The price is at the bottom of the range. In the coming days, the reporting season for the 2nd quarter will begin. If the US stock indices SP500 and Nasdaq continue to fall, and investors run away from risky assets, then there is a high probability that oil prices will fall to $100 per barrel. We have sanctions against Russian oil as deterrents, as well as increased demand for oil due to the easing of restrictive measures in China.

How the week closes is very important, as the failure of buyers to return the price to $113.50 will increase the likelihood of it sliding to the $100 level next week.