Brent quotes fell down under $63 on December 4 after Friday's strengthening, encountered a resistance on about $63.55, and stalled at about $62.30. As per the daily results, the asset fell by 2% and risks developing a bear correction in the short term.
Last week, the drilling activity in the United States rose again reaching the highest values of the end of September. This has created fears for extraction and increase of reserves, which resulted into fixing of profits in the market.
Fitch agency’s comments have poured the oil in the flame -- the forecast of average annual price of Brent has been left at $52.5 per barrel in 2018, however, the important role of shale oil extraction in the long term has been mentioned, which increased the players’ fears.
“Brent risks developing a bear move towards the direction of $62, but if the negative remains moderate, the asset will wait for purchases on declines,” experts believe.