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Brent trading not far above long term support of $88.02

FXStreet (Łódź) - Independent Analyst Malcolm Graham-Wood notes that the price of crude oil continues decreasing on Friday, with Brent trading at $88.91, getting nearer to its long term support of $88.02.

Key quotes

"Economic news, particularly from Europe and specifically from Germany looks worse by the day, yesterday it was export stats, what next? Well if the economists are to be believed, a huge stretch of the imagination at any time, China is next and Reuters are suggesting soft domestic demand numbers next week."

"Whilst all these figures are bleak and supply to the market continues to build we must be close to someone trying to draw a line in the sand at least on a temporary basis."

"Where that may come from is difficult to see, Saudi has made its position clear, the US and Russia have no desire nor mechanism to curb production and unless the price falls another $10 say, production remains economic particularly for those only chasing cash flow."

"But in the $80’s it must be in the interests of Opec to come to some sort of agreement and I would also expect to see some evidence of China adding to its strategic reserves at some stage."

"This is hardly the recipe for a long term turnaround in the supply/demand relationship but remember that probably only two quarters of strong discipline from Opec would bring the position back into some sort of equilibrium."

"The end of the world for the oil price is not nigh but at least there are some benefits of cheap oil to struggling economies…"

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