Fundamental analytics

Brent: Oil market follows the start of new round of trade negotiations in Beijing

Brent

Oil market so far is being traded in quite a tight range. Support to the quotes is provided by the news over the start of new round of trade talks. Investors expect signing of intermediate trade agreement shortly, that should facilitate improvements of the situation in international trading and growth of energy demand. The 16-month trade dispute between the world’s two biggest economies has slowed growth around the globe and prompted analysts to lower forecasts for oil demand, raising concerns that a supply glut could develop in 2020.

Restraining factor for oil prices is situation on stock markets. The major European indices are being traded almost flat at this moment. Demand for dicey assets remains low limiting chances for further growth of oil prices.

Today there are no important news in economic calendar, therefore the main influence on trading process will be produced by geopolitical news.

On the chart we see another attempt of buyers to overcome the 62.50 mark. So far the price is sharply rebounding off the local peak at 62.75, therefore prevailing scenario now is forming of retracing movement to the downside.

Resistance levels:  62.50, 64.00, 65.00;

Support levels: 61.00, 60.00, 58.50.

Main scenario: Decline towards 61.00.

Alternative scenario: Gaining a foothold above 62.50 and growth towards 64.00.

Fundamental background is neutral. Bearish signals prevail on the chart locally. We consider short-positions from 62.50.

 

 

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