Fundamental analytics

Brent: Oil is being traded temperately amid flat trading news

Brent

Oil market has closed trading session on Monday almost unchanged. Traders expect OPEC meeting which is due next week. Most likely the cartel will take decision on extension of the production cuts agreement to stabilize situation on the market during lowering global demand for energy.

Locally the quotes might get some support from the news on the outcome of phone talks between high officials of USA and China. The parties have agreed to continue negotiations to settle the key questions which interfere with securing an interim trade deal. Top trade negotiators from China and the United States held a phone call on Tuesday morning, China’s Commerce Ministry informed, as the two sides try to clinch a preliminary “phase one” deal in a trade dispute that has been in progress for 16 months. Beijing’s insistence that Washington lift the Trump administration’s tariffs has been a major dissent point. Growth of risk appetite is observed on the market, that will provide support to the oil quotes during this day.

On the chart situation remained virtually unchanged over the past 24 hours. Trading goes in a tight range in the vicinity of 62.50 mark. Main scenario is still a break of this level and development of upward movement in direction of 64.00 mark.

Resistance levels: 62.90, 64.00, 65.00;

Support levels: 62.00, 61.15, 60.00.

Main scenario: Stabilizing above 62.50 and growth towards 64.00.

Alternative scenario: Break of support at 62.50 and decline towards 61.15.

Fundamental background is moderately-positive. Bullish signals prevail on the chart. We consider long-trades from the 62.20 level.