Fundamental analytics

Crude oil continues to rise in price despite the growth of inventories in the US.



Yesterday’s trading session for gas has been closed in the red with decline by almost 2%.  Whereas fundamentally there were no important news, that could produce such solid pressure on the price. Therefore shortly we can expect a moderate recovery of the quotes to the local highs established this week.

Today investors will pay attention to the data of industry statistics from the US.

Analysts expect growth of gas inventories for the week by 104B.

On the chart the price stands adjacent to support at the 2.610 level, that is a good point for opening long-positions for this asset in hope for further development of movement within the upward price channel with the primary target at the 2.735 level.

Our recommendations: Longs from 2.610.


Crude oil continues to rise in price despite the growth of inventories in the US.

According to report of the US Department of Energy inventories rose by 5,4 million barrels for the week whereas experts predicted decline of the indicator by 0,5 million barrels.

The market has virtually ignored this information concentrating all attention on the situation in the Middle East. Let’s remind, that on weekend two Saudi Arabian oil vessels were attacked in the vicinity of the Hormuz Strait.  Later one of the major oil pipelines in Saudi Arabia has undergone an attack of seven drones. The country’s authority has undertaken safety measures and temporarily put on hold oil transporting through this pipeline. Official Washington and Riyadh put blame on Iran for the attack. In the beginning of May USA has tightened their sanctions against Iran, that confined Tehran’s capability in oil exports to the major consumers. Investors have fears, that further escalation of the conflict may drive to substantial disruptions in oil supply.

A constraining factor for more intensive growth of the oil prices is IEA forecasts released earlier this week. According to the report demand forecast was lowered. The reason to revise the report is linked to slowdown in global economy and rising tension in international trading.

On the chart the price has broken local support at 70.75 and now moves in direction of the next resistance level, which is located at the 72.00 mark. We should reckon on more active growth of the quotes only after stabilizing of the price above 72.00. In this case the price may reach the levels 73.20 and 74.00 in the coming days.

Our recommendations: Long-trades from 71.00.

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