During Tuesday’s session oil price showed quite a tangible growth after messages reporting United States will delay imposing a 10% tariff on certain Chinese products from 1 of September to December 15, 2019. As a result Brent has closed trading session with growth by more than 4%, WTI almost 3,8%.
This news eased concerns of investors, who feared that long-lasting trade conflict between USA and China may slow down global economic growth and dampen oil demand. Nevertheless it’s early to discuss mid-term reversal of oil prices. Today we’ll have in the spotlight the data of weekly statistics from the U.S., that can define vector of oil prices’ movement for the second part of the week. According to API data oil inventories this week rose by 3,7 million barrels, that makes much more likely getting weaker data from U.S. Energy Department as analysts forecast drop of the indicator by 2,8 million barrels. Therefore oil market can get under pressure again during american trading session.
On the chart the price showed substantial growth having overcome resistance at the 58.75 level. The next important resistance level resides at the 62.30 mark, therefore we can expect resumption of upward movement from current levels.
Resistance levels: 61.00, 62.30, 66.00;
Support levels: 59.55, 58.75, 57.65.
Main scenario: Correction towards 59.55 and resumption of upward movement.
Alternative scenario: Break of support at 59.55 and decline towards 57.65.
Fundamental sentiment on the market has changed sharply. On the chart there are signals in favor of further development of upward movement, therefore in short-term we give preference to long-trades for this asset with search of entry points adjacent to the 59.55 level.