Prices on the world oil market depend on Iran and the USA - opinion

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According to a number of experts, at the moment, the cost of oil in the global market will depend on the strategy chosen by the United States and Iran.

On Monday, October 29, oil quotes of reference varieties remain within the level fixed last Friday. However, despite the growth of Friday's trading, at the moment, black gold has fallen in price. The value of the Brent brand has fallen by 2.7%, and the value of WTI by 2.4%.

Foreign investors are very attentive to such factors as the likelihood of an increase in oil production from Saudi Arabia and other countries included in the OPEC + transaction. It is expected that these states will be able to compensate for the possible shortage of Iranian oil on the world market after the introduction of the next US sanctions.

Brent crude futures for December delivery on the ICE Futures exchange in London fell 0.04% to $ 77.59. Last Friday, this contract increased by 0.95%, to $ 77.62. Futures for light crude oil WTI for December delivery rose in price by 0.01%, to $ 67.6. According to the results of previous trades, this variety went up by 0.39%, reaching a figure of $ 67.59.

According to experts of the American oilfield services corporation Baker Hughes, the number of existing drilling rigs in the United States increased by two units over the week, reaching 875. Experts note that this is the maximum figure since 2015. Recall that since the beginning of 2018, the number of functioning drilling rigs in the United States has increased by about 100 units.

According to analysts, the main intrigue of the world market for black gold was the expectation of action by China in the context of a trade conflict with the United States. In the case of purchases of Iranian oil by the Chinese authorities and their disregard for sanctions, oil quotes will continue to decline, experts believe.

The material has been provided by InstaForex Company - www.instaforex.com