Oil draws a triangle

Looking at the charts of oil quotes is good visible the technical figure of the tapering triangle. The volatility of oil prices decreases in anticipation of decisions which be made at the next OPEC + monitoring committee, which is now taking place in Abu Dhabi.

Most likely, OPEC will again report about the terms of the agreement are respected, and some participants of the initiative to reduce output even exceeded designated quotas. But the negative moment is that the production inside the cartel is still growing. This can cause resentment among the other exporting countries which have already expressed their dissatisfaction with this situation.

While the seasonal factor eliminates the increase of production, due to the growth of demand, but if this goes on like this, other OPEC+ members may begin to refuse from participate in the agreement. But this may happen later, at this meeting of the committee all participants are likely to confirm their willingness to adhere to plans to limiting output volumes.

Saudi Arabia most of all wishes to achieve a balance in the oil market, because from it arrives the largest number of statements and offers for regulation. Now Saudi Arabia declares that in September to reduce the sales volume of black gold to the Asian market. At the same time, the active action of the Saudis, while leads to nothing. Even the idea of cut the export causes major doubts that this will somehow help to achieve a balance between supply and demand.