The cost of oil declined slightly at the beginning of the trading session. Concerns about demand for the energy product have outweighed positive US economic data, putting downward pressure on quotations. However, the main direction remains bullish.
During the previous market session, prices for black gold increased as investors' concerns about a slowdown in the global economy eased amid positive US GDP data.
This indicator rose to 2.4% in the second quarter, although analysts forecasted only a 1.8% increase. The result confirms the position of Jerome Powell, Chairman of the Federal Reserve System (Fed), regarding a more stable state of the American economy.
Nevertheless, investors' concerns about the long-term prospects for oil demand intensified after the global central banks tightened monetary policy.
Thus, on Wednesday, the Fed raised the interest rate by 0.25%, leaving the possibility of further increases. The European Central Bank (ECB) did the same.
EIA inventory data on oil the energy products supported the uptrend of black gold. US crude inventories fell last week as net imports declined.
In the week to July 21, crude oil reserves in the country decreased by 600 000 barrels to 456.8 million. Analysts polled by Reuters expected a sharper decline of 2.3 million barrels.
Stocks of energy products at the terminal in Cushing, Oklahoma, fell by 2.6 million barrels over the same period.
The EIA also reported a 1.58 million barrel decline in net US crude imports.
Brent oil forms the ascending channel on the chart.
In terms of wave analysis, the price forms the third ascending wave. The breakthrough of the top of the first wave at 81.75 has already happened. The upward movement may intensify soon. The near resistance is at the level of 87.40.
Short-term prospects for Brent are buying.
Target is at the level of 91.90.
Part of the profit should be fixed around the level of 87.40.
Stop-loss is around the level of 78.50.
The bullish trend is short-term, so choose a trading volume of no more than 2% of your balance.