On Wednesday’s trading session oil retains upward movement vector after release of positive statistics from API. According to the data of report oil inventories in the country in the last week has dropped by 3,5 million barrels.
Today U.S. Energy Department report will be published where analysts predict growth of inventories by almost 1,9 million barrels. API report makes more likely publishing better data, that may locally provide tangible support to oil market. Oil prices were also buoyed by data showing lower exports in June from Saudi Arabia.
The quotes also got some extra support today from the situation on equity markets, where Asian and European indices are being traded in the green pointing to a growing interest of investors in dicey assets. If indices retain upward movement vector oil market can continue recovering.
But uncertainty over the global economic outlook amid the U.S.-China trade dispute restrain gains in the oil markets.
On the chart the price has settled above the 59.20 level and continues to move higher in a slow mode. The closest significant resistance level resides at the 60.80 mark. In the coming days this level will act as a main target for bulls.
Resistance levels: 60.80, 62.30, 64.30;
Support levels: 59.20, 57.50, 55.55.
Main scenario: Growth towards 60.80.
Alternative scenario: Break of support at 59.20 and decline towards 57.50.
Market sentiment remains moderately-positive. Bullish signals prevail on the chart. For intraday trading we give preference to long-trades considering them not higher that the 59.20 level.