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Brent Crude Oil Market Update

2/14/2023 12:52 PM

During the morning trading session, benchmark Brent Crude Oil is correcting to the level of 86.00 ahead of OPEC's monthly forecast release today.

From the local perspective, investors reacted neutrally to yesterday's report by the Energy Information Administration of the US Department of Energy (EIA) on hydrocarbon production forecasts for March: shale oil production is expected to grow by 0.8% or 75.0K barrels per day. The figure for February was 9.282M barrels per day, lower than the previous estimate of 9.375M barrels per day. Also, analysts believe that the production of raw materials during 2023 will increase by 80.0K barrels per day to 12.49M barrels per day and, by 2024, will reach 12.65M barrels per day. At the same time, an additional plan was announced to release 26.0M barrels of oil from the strategic reserve from April to June, which should not seriously impact reserves since Congress planned this measure for the current year. At the moment, the filling of the strategic reserve is about 371.0M barrels and has not changed for several weeks in a row.

On the daily chart, the trading instrument is moving within the global downward corridor, approaching the resistance line.

Technical indicators point to a local correction: fast EMAs of the Alligator indicator are preparing to cross the signal line downwards, and the AO histogram is forming rising bars near the transition level.

Resistance levels: 88.10, 95.00. | Support levels: 82.70, 76.60.

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