Fundamental analytics

Oil prices resumed their upward movement


On Wednesday, in Asia, oil prices were mostly held in the green trading zone. Investors are playing back the results of the OPEC + meeting at which the participating countries reaffirmed their commitment to implementing a strategy to prudently restore oil supplies to the market in June and July. Investors also remain optimistic about the prospects for a recovery in fuel demand in the US, China and Europe.
Following the OPEC + meeting, Saudi Arabia's Energy Minister Prince Abdulaziz bin Salman said he saw a steady recovery in demand in the US and China and added that the pace of vaccine deployment "could only further rebalance the global oil market."
OPEC + countries also expect a significant reduction in oil reserves in the period from September to the end of the year.
Messages about problems in the negotiations on the Iranian nuclear program may also have a positive impact on the market. Two Western diplomats and an Iranian official said talks are likely to be suspended on Thursday, and it is unclear if talks will resume before Iran's presidential elections, which are scheduled for June 18.
In the coming days, investors will be watching the release of industry statistics from the US.
As part of the pullback movement, the price tested the support at 67.40. Buyers keep the price above this level, so the bullish scenario remains the priority. Within the day, a retest of the 68.50 level can be expected.
Short-term sales with very meek targets can be seen around the 68.50 level.
The intraday zone for purchases is located at the level of 67.40.
· Resistance levels: 68.50, 69.00, 70.00.
· Support levels: 67.40, 66.40, 65.45.
The main scenario is growth to 68.50.
An alternative scenario is a breakdown of the support at 67.40 and a decline to 66.40.
The current fundamental background is moderately positive.
Trading recommendations: considering buy signals at the level of 67.40