Brent crude grade has closed the fourth consecutive day in the green, reacting on partial easing of tensions in relations between USA and China, and also growth of demand for dicey assets.
Oil markets were also supported by continuing tensions between the United States and Iran, with Iranian President Hassan Rouhani cautioning Washington against tightening pressure on Tehran.
Constraining influence on the market was produced by ambiguous data of the U.S. industry statistics. Oil inventories in USA fell by 2,7 million barrels in the latest week, whereas analysts expected decline by 1,9 million barrels. But gasoline and distillates inventories at the same time rose by 0,3 million barrels and 2,6 million barrels respectively while analysts expected drop of these indicators.
Today the main attention of the market still will be paid to the news of geopolitics. Investors will evaluate the prospects of global economy development, that regulates global fuel demand. Trading also will be influenced by the situation on equity markets and investors’ risk appetite.
On the chart the price continues to stay above the 59.20 level keeping good chances for continuation of growth in direction of the 60.80 and 62.30 levels.
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.
Moderately-positive sentiment rules the market. Bullish signals still prevail on the chart. In short-term we give priority to long-trades for this asset, that should be considered in the vicinity of 59.20 level.