The price of Brent Crude Oil is around the key level of the last months of 80.00, and there are no prospects for a serious change in dynamics.
US oil production is gradually increasing: according to the Energy Information Administration of the Department of Energy (EIA), in April, the increase will be 68.0K barrels compared to March, and the figure will reach 9.214M barrels. In many respects, this will affect the basins where shale oil is mined, namely the Perm and Eagle Ford.
The market has not yet reacted to the recent Bloomberg report that the Indian authorities have decided to comply with the G7-agreed price ceiling for Russian energy resources at 60.00 dollars per barrel and, during an intergovernmental forum held earlier this month, turned to credit institutions and traders with a request to adhere to the sanctions requirements. The government of the Russian Federation denied this news and stated that cooperation takes place based on a decision made by the presidents of the two countries, and not reports from the media.
A factor that can influence the asset is tomorrow's data on oil reserves from the American Petroleum Institute (API) and the Energy Information Administration of the US Department of Energy (EIA), which recorded their significant growth for several weeks in a row: this week, forecasts suggest an increase of 0.555M barrels.
On the daily chart, the trading instrument is trying to leave the local ascending corridor, holding below the support line at 81.50.
Technical indicators keep a poor sell signal: fast EMAs of the Alligator indicator have crossed the signal line downwards, and the AO histogram is forming downward bars, falling in the sell zone.
Resistance levels: 82.50, 88.00. | Support levels: 78.00, 73.00.