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Brent Crude Oil Market Update

8/16/2022 1:05 PM

Brent Crude Oil prices are correcting, trading slightly below 94.00. This week, reports of a record reduction in oil supplies from Russia to Asian countries put pressure on quotes.

According to Bloomberg, in general, the volume of "black gold" transported by sea from Russia decreased to 3.24 million barrels per day from 3.32 million barrels per day, and exports to Asian countries decreased to 1.75 million barrels per day from 2.1 million barrels per day earlier. First of all, experts attribute the decline in imports to Asian countries' purchases of about 16.0 million barrels of cheaper American oil, which turned out to be much more profitable for them than the new proposal from Saudi Arabia, which significantly increased selling prices at the beginning of the month, adding a premium of 10.8 dollars per barrel.

As for the demand for oil contracts on the part of investors, last week the pace of their reduction accelerated significantly. According to the US Commodity Futures Trading Commission (CFTC), the number of net speculative positions amounted to only 210.7 thousand after 253.8 thousand contracts a week earlier, which indirectly reflects a drop in demand due to a decrease in the supply of Russian "black gold".


On the weekly chart of the asset, the price remains within the local descending channel, declining towards the support line. Technical indicators keep a clear sell signal, which excludes the possibility of a reversal of quotes: fast EMAs of the Alligator indicator are moving away from the signal line, and the AO oscillator histogram, being in the sell zone, is forming new descending bars.

Support levels: 92.10, 85.60. | Resistance levels: 96.35, 105.23.



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