Fundamental analytics

Brent: Oil market growth on hopes trade tensions between Washington and Beijing could ease

Brent

Oil market retains upward vector on the back of careful optimism of investors regarding prospects of mending trade relations between USA and China. Yesterday president Trump’s administration reported extension of license for tech-giant Huawei Technologies Co and preparation for new round of negotiations.
Growth in equity markets around the world on growing expectations that global economies would take action to counteract slowing growth also provided support to oil prices.
Market also got some support from the news reporting Yemen’s Houthi rebels struck Saudi Arabia’s Shaybah oil field, one of the kingdom’s largest. The Houthis said they had targeted Saudi Aramco's Shaybah oil field with 10 drones. Mass media also reported that this attack drove to suspension of production.

Today besides geopolitical news the market will spotlight weekly data from API on dynamics of oil inventories in USA.

On the chart buyers continue to gain upward pressure on the 59.20 level increasing chances for the break of this mark. In this case bulls might reckon on further development of upward wave in direction of the 60.80 and 62.30 levels.

Resistance levels: 59.20, 60.80, 62.30;

Support levels: 57.50, 55.55, 55.00.

Main scenario: Break of resistance at 59.20 and growth towards 60.80.

Alternative scenario: Break of support at 57.50 and decline towards 55.00.

Moderately-positive sentiment remains on the market. Bullish signals are still actual on the chart. For intraday trading we give preference to long-trades, that should be considered from the 58.85 level and lower.

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