Analysts talk about a “bubble” in the market waiting for the fed’s decision on rates
The price of oil falls on the world market, despite the recent agreements at the Congress of OPEC to reduce production in the world. “The price of oil for delivery in February fell today by almost 4% to close the previous trading session, to $57,27 per barrel, the lowest level since October of 2017″, — said the Director of analytical Department of Alpari, Alexander Razuvaev.
Last week OPEC and outside the cartel States were able to agree on new production cuts from January 2019 1.2 million barrels per day compared to October 2018. But analysts say the market is not confident in fulfilling these obligations.
“OPEC countries have many times reaffirmed the saying that promise — not to marry. If suddenly the fed will give the market a new benchmark that the rate hike cycle is not over yet, the fall in oil prices could accelerate. But even without this “bubble” in the U.S. stock market carries very serious risks. If it ruptures before our target on S&P in 1800-2000 points, Brent can easily fly to $30-35 per barrel,” predicted Razuvaev.