It is noted that WTI crude oil has lost 7% of its value.
Pikin noted that the main reason is "a new round of discounts that Saudi Arabia has begun to give."
“This was the main trigger for the fall.
Because last week we saw that oil was going above $ 46 per barrel.
And as soon as the Saudis started dumping again, playing with discounts, the picture repeats itself, as, for example, in early spring, from where the crisis began - also with discounts that the Saudis gave, ”the expert explained.
According to him, the key factor that determines further growth is how quickly demand will recover.
“The recovery in demand depends on the dynamics of coronavirus infection ... This is influenced, in particular, by the widespread distribution of vaccines, their quantity, the process is just beginning,” Pikin said.
The analyst noted that everything will depend on how quickly the process of stopping the spread of coronavirus goes.
“Plus the maintenance of discipline on the part of the countries that have entered the OPEC + agreement with the company.
Therefore, such fluctuations are normal, oil cannot grow all the time, that is, some rebound is needed, ”he concluded.
Earlier, as RIA Novosti reported, the price of Brent crude for the first time since the end of June dropped below $ 40 per barrel.