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Oil Reserves in the USA have Sharply Decreased Again

12/22/2022 1:22 PM

Prices for benchmark Brent Crude Oil have reversed again, actively rising after the publication of data on global production of "black gold" and trading just below the 83.30 mark.

According to October statistics, the USA holds the lead with 11.971M barrels of oil, Saudi Arabia is in second place with 10.957M barrels, and Russia is in third place, which has significantly reduced production levels, which amounted to 10.66M barrels and is still higher than the 10.599M barrels recorded in August. During the period from January to October, energy production in the Russian Federation managed to increase by 2.4% from last year's figure to 443.2M barrels.

At the same time, oil reserves in the US strategic reserve continue to decline rapidly: last week the indicator adjusted by -3.6M barrels, amounting to 378.6M barrels, which is the lowest value since 1983. In addition, the US Department of Energy announced that in order to replenish the volumes put on the market, the purchase of energy will begin, and the first batch of 3.0M barrels will be delivered in February 2023.

The weekly data on oil reserves in the USA also contributed to the local upward dynamics of Brent Crude Oil quotes. Thus, according to the report of the American Petroleum Institute (API), the volume of "black gold" in storage decreased by 3.069M barrels after an increase of 7.819M barrels earlier. The situation is similar according to the Energy Information Administration (EIA) of the US Department of Energy, which reported a volume correction of -5.894M barrels after an increase of 10.231M barrels last week.

On the daily chart of the asset, the price is trading within a descending corridor, being in the middle of the range.

Technical indicators hold the sell signal, which has weakened somewhat recently: the fast EMAs of the alligator indicator are still well below the signal line, but are approaching it, and the histogram of the AO oscillator forms new ascending bars, being in the sales zone.

Support levels: 81.20, 75.80. | Resistance levels: 84.60, 89.40.

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