Oil market opens new trading week in quite a calm manner. The price for Brent crude grade is being held above the 66.00 mark. Market is calming down gradually after growth of tensions in the Strait of Hormuz. Now Great Britain and Iran are trying to resolve this issue decreasing concerns regarding occurrence of disruptions in energy supplies from the Middle East. Restraining influence on the market was also produced by the data of economic statistics from China, where growth of GDP has plunged to the trough of 1992. This statistics first of all somewhat decreased investors’ interest in dicey assets. Secondly, it raised concerns of investors regarding further aggravation of economic situation in China, that remains to be one of the biggest energy consumers. We should relate to support factors messages on weather deterioration in the Gulf of Mexico. Storm “Barry” is about to turn into a hurricane. Many of oil production platforms have been mothballed, that will drive to decline in supply on the U.S. market. Fifteen production platforms and four rigs were evacuated in the north central Gulf of Mexico as oil firms moved workers to safety ahead of a storm expected to become a hurricane by Friday. According to analysts’ estimates production volume in the Gulf of Mexico has decreased by more than 50%.
On the chart the price continues to hover above the 66.00 level, that makes prevailing scenario for today further growth of the quotes in direction of the 68.80 level.
Resistance levels: 68.75, 68.80, 72.50;
Support levels: 66.00, 63.70, 62.50.
Main scenario: Growth towards 68.80.
Alternative scenario: Break of the 66.00 level and decline towards 63.70.
Moderately-positive sentiment retains on the market, therefore for intraday trading we give preference to short positions, that should be considered at the 66.00 level.