On Tuesday, investors said OPEC was unlikely to increase oil production as planned for January, which would lead to lower oil prices in the market.

OPEC will cut its oil production by 2 million barrels a day in January. OPEC and other major oil producers announced cuts in March due to sluggish oil demand as the world faces the spread of the coronavirus.

Pierre Andurand, Founder and Chief Investment Officer of Andurand Capital, told in the meeting, “I do not think OPEC will increase production in January, and if successful, the price of oil in the market, there will definitely be a decline.”

Ben Luckock, co-head of Andurand and Trafigura oil companies, said they saw oil prices rise to $ 50 a barrel by the end of the year, up from the current $ 40.

“2022 will be the first year that oil prices may rise sharply,” said Ben Luckock, Trafigura’s co-chairman. He added that Joe Biden’s election victory could lead to a change in policy, adding to the pressure on oil prices amid rising oil production in Venezuela and Iran.

The most influential factor remains the demand for use by international airlines. Andurand said aviation oil demand will not increase again before 2022. He added that the spread of the virus has led to the weakening of the global economy, while the impact of climate change could be even greater.

US oil stock fell last week, but concerns remain that oil demand is likely to decline amid rising signs of the coronavirus in the United States and around the world. US crude oil stock fell 831,000 barrels last week, according to estimates released Tuesday by the US Petroleum Institute after a 691,000 barrel production last week.

US benchmark WTI Futures fell 3.5 percent after falling 3.2 percent to $ 39.29 a barrel on Tuesday.

Today’s recommendation: investors should buy oil in the price $38.860 take profit $40.600 and stop loss $38.300.

Resistant1: 39.730 Support1: 38.300

Resistant2: 40.600 Support2: 37.450

Resistant1: 41.300 Support1: 36.120

Analyzed by: Mr. Long Samnang,Independent Analyst