During the Asian session, Brent Crude Oil prices show ambiguous dynamics, holding near local highs from August 1, renewed yesterday, when quotes showed the strongest growth in the last few weeks.
The instrument is significantly supported by expectations of a further reduction in the oil supply in the market after the statements of the Minister of Energy of Saudi Arabia that OPEC+ is considering such a possibility in the foreseeable future. At the same time, demand has so far remained fairly stable, although the actively developing energy crisis in Europe has led to the closure of several important industrial enterprises. In turn, the demand for fuel oil and related oil products has increased as an alternative to natural gas.
Meanwhile, investors are still hoping that cheap Iranian oil could hit the market before the end of the year. Negotiations on the "nuclear deal" are ongoing, and some analysts suggest that the United States may pressure European authorities on this issue, allowing an agreement to be concluded faster. The entry of additional oil into the market would allow for a significant reduction in quotations but only in the short term. Also, official Tehran, sensing the tense situation in the energy markets, may revise its terms for resuming supplies.
On Tuesday, investors are waiting for a report from the American Petroleum Institute (API) on the dynamics of oil stocks in the US for the week: the previous report reflected a sharp decline in stocks by 5.632M barrels.
On the daily chart, Bollinger bands are growing moderately: the price range is growing but not as fast as the "bullish" activity develops. The MACD indicator is growing, keeping a strong buy signal (the histogram is above the signal line). Stochastic, having gone down last week, is reversing upwards again, signaling that the instrument is overbought in the ultra-short term.
Resistance levels: 103.05, 106.00, 109.00, 112.00. | Support levels: 100.00, 97.21, 93.34, 91.00.