Oil prices decreased at a moderate pace during the Monday trading following the rebound recorded late last week. Brent oil failed to hit the 78 handle, and quotes fell below 77, which has been observed today as well.
The commodities market has to cope with several challenges at the beginning of this week. First of all, the USA keeps raising drilling activity, which indicates possible hikes of shale oil production.
Meanwhile, the market's fears of the supply shortage summoned by the upcoming US restrictions against Iran fade away gradually. Besides, one of the Iranian officials stated that oil export was unlikely to be below 1 million bbl per day after the sanctions came into force. It was reported earlier, that Saudi Arabia along with other OPEC states is ready to ramp up production to cover a lack of Iranian oil.
This week, the players seem to become more optimistic. Specifically, risk assets are on the rise now driven by Donald Trump's statements concerning the long-awaited trade deal with Beijing.
As a result, demand for the risk can rebound unless new negative reports appear in the world arena. This can lend a support to Brent upturn. However, the decline still can happen in this segment. Moreover, the price recovery above 80 seems hardly real so far.