Fundamental analytics

Brent: Statistics from API provides support to oil prices


On Wednesday crude oil market is being traded in the green on the back of good data of industry statistics from the U.S. API report showed bigger than expected decline in oil inventories. Actual decline was 8,1 million barrels. Now investors expect a report by the U.S. Department of Energy, that might appear to be better than the forecast of - 3,081 million barrels.

One more solid driver for growth of the crude oil quotes were messages that major U.S. oil producers on Tuesday began evacuating and shutting in production at their deepwater Gulf of Mexico platforms in advance of a tropical disturbance that might turn into a storm this week.

Investors continue to follow the conflict linked to the Iranian nuclear program. This week Tehran has announced initiation of increased uranium enrichment intending to surpass limits stipulated by the international deal of 2015. Iran also has warned about further prolongation of work in this direction in case USA will keep the sanctions. The White House responded in kind and threatened Iran with imposing new sanctions and complete isolation.

Therefore in general we may say, that positive sentiment prevails on the market now and it will facilitate further growth of the crude oil quotes.

On the chart situation remains almost unchanged. The price maintains vector of upward movement and in the coming trading days we can expect growth of the quotes towards resistance at 66.00.

Resistance levels: 65.00, 66.00, 68.80;

Support levels: 63.50, 62.50, 61.00.

Main scenario: Break of the 65.00 level and growth towards 66.00.

Alternative scenario: False break of the 65.00 level and decline towards 62.50.

Positive bias retains on the market. Bullish signals lead the way on the chart. Within intraday time-frame we consider long-positions from the 64.40 level.



New articles