During the Tuesday trading session, WTI crude oil and Brent increased in price by 3.4% and by 2.7% respectively. The market hopes that the world's largest oil producers will agree to reduce production to prevent a further drop in oil prices.
The day before, the Director General of the Russian Direct Investment Fund, Kirill Dmitriev, stated that Russian Federation and OPEC countries are very close to concluding an agreement on limiting oil production. Kindly note that an extraordinary meeting of OPEC + countries should be held on Thursday, April 9.
Meanwhile, many experts still warn the market against excessive optimism, since even in the case of a decrease in the level of production in the market, a significant imbalance in favor of excess supply may remain. Analysts say the global recession may be deeper than previously expected. This will inevitably lead to a reduction in energy demand. Currently, the drop in demand is estimated at 30 million barrels per day.
Today, investors will also follow the publication of new weekly stock data from the API.
Regarding the chart, the price is again approaching resistance at the level of 30.30. In case of a breakdown of this mark, we can expect the growth of quotations towards the level of 33.75.
· Resistance levels: 30.30, 33.75, 35.70.
· Support levels: 27.50, 25.75, 23.20.
The main scenario - a breakdown of resistance at the level of 30.30 and further growth.
An alternative scenario - a false breakdown of the level of 30.30 and a decline towards 27.50.
The fundamental outlook is moderately positive. Bullish signals still prevail on the chart. Longs should be considered at the levels around 27.50 and below.