Brent (a 4-hour chart)
Contrary to our expectations the overbought oil managed to consolidate above $ 49 and reached the area of $ 50 and then $ 50.25
It looks like the market is moving up to the local maximum of 2016 years- $ 51 per barrel. Yesterday, the market was supported by inventory data. However, the annual level of the US oil production is still declining. It is a kind a sign of speculative component in this movement.
The rally in the oil market continues. Near term resistance is at $ 51 per barrel area. Support is around $ 49-67- $ 49