The price of Brent Crude Oil is trading around 95.00, preparing to continue rising after the release of statistics in the US.
The weekly report on energy stocks from the American Petroleum Institute (API) was positive for the market: the figure fell by 0.448M barrels, exceeding the forecasted decrease by 0.117M barrels, while gasoline inventories fell by 4.5M barrels. Similar statistics from the Energy Information Administration of the US Department of Energy (EIA), published yesterday, showed a decrease in value by 7.056M barrels with a forecast of 275.0K barrels, to which investors reacted positively, and the trading instrument rose to 95.00.
Nevertheless, there is no need to talk about a significant strengthening of oil prices, as experts fear a possible recession in the United States, in which case the consumption of petroleum products will drop to 10%, and even against the background of a decrease in supplies from Russia, the current amount of fuel produced will be enough to meet the needs of consumers. Additional pressure on the quotes of the asset is exerted by news on the resumption of the "nuclear deal" with Iran from 2015, in the event of which the export of Iranian oil will increase by hundreds of thousands of barrels per day, leading to a decrease in prices in the market, which still cannot recover from the consequences of the epidemics of COVID-19.
The long-term trend changed to a downtrend, and the trading instrument broke through the key support at 98.00 and the support level at 96.24, and the next downside target was 91.13. The local resistance is at 101.95, and when it is reached, short positions can be considered, with the first target at the current week's low at 92.95.
The medium-term trend is down, and zone 2 (93.54–92.69) was reached within the trend. If it is broken, zone 3 (85.04–84.19) will become the next sell target. The key resistance of the trend is shifting to 102.30–101.45, from where new sales can be considered with the target at the low of the week at 92.95.
Resistance levels: 101.95, 110.00. | Support levels: 91.13, 86.37.