Podstawowa analiza

Brent: Corrective movement is in progress


Oil price shows moderate growth today. Support to the quotes was provided by the U.S. jobs data published on Friday, which somewhat eased investors’ concerns over slowing down of economic growth in this country.

Also investors were upbeat about comments of OPEC’s Chairman Mohammed Barkindo, who told that terms of production cut agreement in September will be probably overperformed by more than 136%. The Chairman of OPEC noted, that so far there is no necessity in more aggressive curtailment of oil production volumes. Despite Monday’s gains, Brent is still down more than 20% from the 2019 peak of $75.60 a barrel recorded in April.
Later this week there will be a release of monthly reports from OPEC and IEA. First of all investors will pay attention to new forecasts on growth of energy demand. On the supply side, solid anti-government unrest has squeezed Iraq, the second-largest oil producer among the Organization of the Petroleum Exporting Countries.

A new round of trade talks between USA and China is scheduled for 10-11 of October in Washington. Its outcome can have a big impact on expectations of investors regarding the prospects of global economy development and dynamics of oil market movement.

On the chart a corrective movement is developing. The closest strong resistance level resides as far as the 61.40 mark, therefore upward wave has very good chances for further development.

Resistance levels: 58.90, 60.00, 61.40;

Support levels: 57.20, 55.55, 55.00.

Main scenario: Growth towards 58.90. 

Mixed sentiment can be observed on the market. On the chart there are signals in favor of corrective movement development. For intraday trading we consider long-positions nearby the 57.20 level.

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