Today, oil prices are recovering after a nearly 2% drop in the previous session. Yesterday's decline was caused by a new wave of fears after the banking crisis. Since no new troubled assets appeared, old banks were in focus. We suppose that this correction will soon be redeemed. Moreover, the oil market received positive news.
According to the American Petroleum Institute (API), crude oil inventories in the country dropped about 6.1 million barrels in the week ended April 21.
Gasoline inventories decreased by 1.9 million barrels last week, and distillate inventories rose by 1.7 million barrels. Official inventory data from the U.S. government was published today.
Although information from API revived the market, expectations of further interest rate hikes, which might curb fuel consumption, might hold back short-term demand growth.
Falling inventories indicate growing demand for oil and petrochemicals.
Russian Deputy Prime Minister Alexander Novak and Elvira Nabiullina, head of the country's Central Bank, will visit Iran next month, according to Ahmad Asadzadeh, the country's Deputy Petroleum Minister. The visit might lead to cooperation that could change the global energy market. Novak plans to visit the 27th Iran International Oil, Gas, Refining & Petrochemical Exhibition in Tehran, which will be held in mid-May. Iranian Petroleum Minister Javad Owji and the Deputy Prime Minister had already discussed bilateral cooperation in the oil, gas, and petrochemical sectors on Monday.
The two major oil and gas countries may agree on new ways to support oil prices.
According to technical analysis, oil fell just short of closing its gap after OPEC+'s decided to cut production additionally. That target was almost reached, and now there will be a reversal attempt. Currently, strong support has been formed, from which there could now be a bounce upwards. The growth target will be one of the previous highs at $82.0. We will place a stop-loss if the current support breaks through and the local minimum is updated to $80.2.
Decrease in Brent oil:
Take profit — 82.0
Stop-loss — 80.2
This content is for informational purposes only and is not intended to be investing advice.