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Oil Production in the US and Russia Increased in Early February

2/9/2023 12:32 PM

Prices for benchmark Brent Crude Oil are correcting around 85.00 after reports of an increase in crude production in the Russian Federation, which allows investors no longer to fear a possible reduction in supply in the market. According to weekly statistics, in the first week of February, the indicator rose by 0.7% compared to the previous month, reaching 1.491M tons per day and approaching levels in the same period last year, which amounted to 1.508M tons. It means that the sanctions policy has practically no pressure on the global oil supply, while Russia's share remains stable, mainly due to the redirection of supplies to India and China. Recall the head of the International Energy Agency (IEA), Fatih Birol, believes that China will provide half of the projected growth in global oil demand in 2023, which is estimated at 1.87M barrels per day.

According to yesterday's report from the Energy Information Administration of the US Department of Energy (EIA), last week, oil production increased by 100.0K barrels per day to 12.3M barrels per day, which is in line with the recent forecast, which assumes an increase in the value this year to 12.49M barrels. Local data also supported quotes, as the EIA reported an increase of 2.4M barrels to 455.1M barrels. The US strategic reserve has stabilized at 371.6M barrels for the fourth week in a row, after shrinking every week due to the release of resources as part of an executive order from US President Joe Biden.

The trading instrument moves within the local ascending corridor on the daily chart, reversing upwards.

Technical indicators are uncertain and indicate a local correction: fast EMAs of the Alligator indicator are preparing to cross the signal line upwards, and the AO histogram is forming ascending bars, approaching the transition level.

Support levels: 82.40, 75.50. | Resistance levels: 88.00, 95.00.

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