Yesterday, data on US crude oil inventories were published. According to the American Petroleum Institute (API), weekly crude oil stocks in the States increased by 4.052 million barrels against the predicted decline of 1.9 million and the previous figure of -6.49 million. The Energy Information Administration (EIA) reported that weekly crude oil inventories increased by 1.233 million barrels against the predicted decline of 2.1 million and the previous figure of -4.156 million. Excess oil stocks at Cushing totaled 0.854 million barrels, while the week earlier they fell by 1.766 million.
Thus, there is downward pressure on the prices from the US segment of the oil market due to increased inventories.
As noted earlier, oil prices are being pressured by weak demand forecasts from the leading importer, China, and easing geopolitical tensions. In addition, supplies from the OPEC+'s rivals have also increased, raising concerns about whether the market can absorb the extra barrels. At the same time, the group itself is set to phase out its oil production cuts.
From a technical point of view, yesterday's upward movement of Brent oil prices to the level of $78.8 per barrel is followed by a slight downward correction of this movement with the target of 78.15. Most likely there is a correction within another correction upward to the level of $80 per barrel. Therefore, in this situation it is advisable to enter the market by buying Brent oil from $78.15 with the target of $79.
The overall recommendation is to buy Brent oil from the level of $78.15 per barrel.
Profits should be taken at the level of 79.0. A Stop-Loss could be set at the level of 77.4.
The possible loss should not exceed 2% of your deposit funds.
This content is for informational purposes only and is not intended to be investing advice.
