Brent (OIL) fell almost 5% after the Libyan National Oil Company (NOC) announced an increase in production, reaching 1.13 million barrels per day, a level not seen since August. At the same time, tensions in the Middle East have eased as Israel has yet to respond to Iran’s attack. Investors believe the political blockade, which halted production in Libya for more than a month, is now over.
Libya expects a rapid return of its oil production to historic levels in the coming days. Up to one hundred thousand barrels per day could thus re-enter the market if the Libyan crisis truly ends, which would help to rebalance the geopolitical risk perceived by investors. Another factor in supply today is the deterioration of sentiment around the Chinese economy, as evidenced by the fall in Chinese stocks.
Oil stopped its decline at the 38.2% Fibonacci retracement level of the last bullish wave, driven by the Israel-Iran crisis, but the downward pressure today is particularly strong.
Source: xStation5
“This content is a marketing communication within the meaning of Article 24(3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/ 92 /EC and Directive 2011/61 /EU (MiFID II) The marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No. 596/. 2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (Market Abuse Regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Directives 2003/124/EC, 2003/125 / EC and 2004/72 / EC of the Commission and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No. 596/2014 of the European Parliament and of the Council with regard to standards regulatory techniques relating to technical arrangements for the objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for the disclosure of special interests or indications of conflicts of interest or any other advice, including in the field of investment advice, within the meaning of article L321-1 of the Monetary and Financial Code. All information, analyzes and training provided are provided for informational purposes only and should not be interpreted as advice, a recommendation, a solicitation for investment or an invitation to buy or sell financial products. XTB cannot be held responsible for the use made of it and the resulting consequences, the final investor remaining the sole decision-maker regarding the position taken on their XTB trading account. Any use of the information mentioned, and in this regard any decision taken in relation to a possible purchase or sale of CFDs, is the exclusive responsibility of the final investor. It is strictly prohibited to reproduce or distribute all or part of this information for commercial or private purposes. Past performance is not necessarily indicative of future results, and anyone acting on such information does so entirely at their own risk. CFDs are complex instruments and carry a high risk of rapid loss of capital due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You need to make sure that you understand how CFDs work and that you can afford to take the likely risk of losing your money. With the Limited Risk Account, the risk of losses is limited to the capital invested.”
