Oil market has closed yesterday’s session with growth. Positive impact on the price was produced by claims of OPEC’s secretary general Mohammed Barkindo who noted, that the cartel may revise forecasts on growth of oil demand setting it higher amid slight improvements in the global economy growth outlook.
Restraining factor for the market is high uncertainty over the prospects of US-Sino trade talks developments. A day before the Wall Street Journal reported, that negotiation process was slowed down due to contradictions regarding purchasing of agricultural products from the U.S.
On the chart sideways channel 60.00-62.50 is still on the cards. main scenario for today implies further development of consolidation in this range. Within alternative option we might expect a break of resistance at 62.50 and growth of the quotes towards 64.00.
Resistance levels: 62.50, 64.00, 65.00;
Support levels: 60.00, 58.50, 57.00.
Main scenario: Retest of resistance at 62.50 and decline towards 60.00.
Alternative scenario: Break of resistance at 62.50 and growth in direction 64.00.
Fundamental background can be described as neutral. On the chart sideways channel 60.00-62.50 is in progress. We consider short-positions at the 62.50 level.