Oil market: the worst may be over. What to expect next?

Today, oil quotes have sharply rushed upward and played back, including the positive results of the G20 summit.

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Black gold rises in price primarily due to the return of risk appetite considering the fact that last Saturday. The United States and China agreed to suspend the mutual increase in trade duties until at least the end of the first quarter of 209.

On the same day, Russian President Vladimir Putin announced that Russia and Saudi Arabia have an understanding that the effect of the OPEC + agreement should be extended, but the question of the volume of raw material extraction cuts remains open.

The bullish sentiment in the market also fueled the Sunday report from January oil and bitumen production in the Canadian province of Alberta will decrease by 8.7% or 325 thousand barrels per day until excessive amounts of raw materials in storage facilities are eliminated.

This week, the attention of traders will be focused on the OPEC + summit, which will be held on December 6 in Vienna.

"The rally in the oil market will continue, and quotations will rise above $ 65 per barrel if OPEC this week announces a reduction in the extraction of raw materials," experts say.

"The cartel and Russia will have to reduce the production of black gold by 1.3 million barrels per day to put an end to the growth of stocks of raw materials above the seasonal trend and return them to the average level of 5 years. Meanwhile, a sharp rise in prices is still not worth waiting. First, it will take some time to fulfill the new terms of the deal. Secondly, US production figures will also hold back growth. Thirdly, despite the introduction of restrictions by America on Iran, several countries will continue to buy oil from the Islamic Republic," they added.

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