Does Iran return to the Oil market? Can it be the solution?
While we were still waiting for higher prices in the Oil market, and ahead of next week's OPEC+ meeting, the Iranian Ministry of Foreign Affairs announced they are planning to start the talks on reviving the international deal on its nuclear program by the end of November. Iranian return to the market can solve the supply shortage if it happens.
On the other hand, we also had the API, and EIA reports during the week, and those published data were about increasing the US inventory levels by 4.3M barrels. However, winter is coming, and counting on them for a longer time is a bit under question. In the end, for now, and for this week it was negative for the Oil price, leading the Oil to close lower for the first week after two months.
At the current $82, the US crude oil price deeps 0.3%, while technically it is trying to return to the bullish trend, with strong resistance at $82.80. In both Day trading and mid-term charts, Oil could avoid the downtrend line, trying to start moving higher for the next week.
While Crude demand in 2021 increases with global recovery from the COVID-19 pandemic, still the Organization of the Petroleum Exporting Countries (OPEC) and allies, known as OPEC+, is unlikely to boost output by more than current plans at the next week's meeting on November 4.
On the other hand, gas prices in UK and EU continued to fall on Friday, after Russian President Vladimir Putin said that they could start pumping gas into European storage next week. However, still, the demand-supply in the market is unbalanced.
