Oil market has closed trading session on Wednesday with quite a good growth (Brent +2,2%, WTI +2,8%) due to release of positive data on oil inventories by Energy Information Administration. According to the report crude stocks rose by 1,8 million barrels in the week against the forecast of +1,54 million barrels.
Therefore oil price most likely will extend losses today.
On the chart price remains in the sideways channel 60.00-62.50. We can expect decline of the quotes within this horizontal channel with target to retest 60.00 level.
Resistance levels: 61.40, 62.50, 64.00;
Support levels: 60.00, 58.50, 57.00.
Main scenario: Decline towards 60.00.
Alternative scenario: Growth towards 62.50.
Market sentiment is moderately-negative. Bearish signals prevail on the chart. We consider short-positions from 61.40.