Fundamental analytics

Brent: Messages regarding attack on oil tankers in the Gulf of Oman facilitate the growth of oil prices.



Natural gas is still being traded at the region of many-months troughs on the back of tangible decline in real consumption of this asset in the U.S.. At the same time in medium term the asset preserves a good chance for recovery.

First of all alongside with the beginning of the summer season gas demand can substantially increase because of higher consumption of electricity for air conditioning. Secondly technical factors can facilitate growth of the quotes. Many investors has closed short positions on this asset after renewal of the three-year trading lows and will gain long-positions shortly pushing the gas price to the upside.

Directly on the chart a corrective movement continues to develop locally with the primary target at the 2.410 level. Therefore despite the global bearish trend we can consider short-term long-trades of the asset from the 2.355 level in the coming days.

Our recommendations: Long-trades from 2.355.



Oil market has been traded in the red yesterday. The pressure on the price was produced by the situation on equity markets, where the major indices were traded short reflecting low interest of investors in dicey assets and also weekly data of USA, that has put on record growth of oil inventories by 2,2 million barrels against the forecast of -0,48 million barrels. This data shows, that demand in crude oil in the U.S. remains to be weak aggravating overall market conditions and facilitating decline in the asset’s cost.

Today yet before the afternoon the market could recover all losses after the news has appeared regarding the armed attack on oil tankers if the Gulf of Oman. This message was distributed by Reuters agency with reference to TradeWinds Newspaper. According to reports the crews of two tankers has given a distress call.

This attack can escalate the situation in the Middle East again, that can become a serious support factor for oil prices in the short-term perspective.

Today also the release of monthly OPEC report is expected, that can have a tangible impact on further trading process.

On the chart after retest of the local low in region of 58.85 mark the price has resumed upward movement and now it’s being traded at the 61.40 region. If buyers manage to gain a foothold above this mark within the next few hours, the next target for the price might be the 63.20 level. Therefore locally we give preference to long-positions, that should be sought at the 60.75 level.

Our recommendations: Long-trades from 60.75.


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