In early July, oil prices reached their highest levels. The last time oil was at this price was at the end of 2018. But after a severe collapse at the beginning of the pandemic, raw materials showed rapid growth. Last month, the OPEC oil cortel made a decision to increase the volume of oil production, which has a minor impact on the price decline. At the meeting which will take place on 01.09. the decision may be reconsidered, as announced by the Kuwaiti oil minister. But it is necessary to take into account the fact that the harvest season is coming to an end, which will significantly reduce oil consumption. Also, fears about a new wave of pandemic can create problems for the oil market. These facts may affect the decline in oil prices. Regarding technical analysis, oil is heading into a short channel and makes another bounce off the resistance line, which can be a good entry point to a trade!
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