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Oil prices return to Monday levels

The oil prices on Wednesday experienced substantial growth due to reports of Iran’s missile strike against US air bases in Iraq. At the moment, WTI growth exceeded 3.4%. Now the market situation has stabilized. WTI is trading up 0.8%, Brent is up 1.1%.

 

Stabilization of the situation was facilitated by statements made by the UAE Minister of Energy Suheil al-Mazrui and OPEC Secretary General Mohammed Barkindo. Al-Mazrui expressed hope for the de-escalation of the conflict and noted a shortage of supply in the oil market. Barkindo said that as a result of the attacks, oil facilities in Iraq were not affected and oil production was carried out in the same volume.

 

Statements of US Speaker Nancy Pelosi further calmed financial markets. On Twitter, she called on the White House to end provocations against Tehran and stated that the conflict must not be escalated. A moderate US reaction further reduces the likelihood of conflict escalation.

 

Amid the aggravation of the US-Iranian conflict, API data on a decrease in oil reserves by -5.9 million barrels remained almost unnoticed. Later today in the US, weekly data from the Ministry of Energy will be published within the framework of which reserves are expected to decrease by 3.6 million barrels.

 

Regarding the chart, very volatile trading continues. After testing the level of 65.00, the price resumed downward movement. Now the reference is the level of 63.20. While the price remains low, we prioritize the option of further correctional movement development in the direction of 62.05. In case of a breakdown of resistance at 63.20, the quotes rising to 64.40 scenario will be the most expected.

 

  • Resistance levels: 63.20 64.40, 65.10;

 

  • Support levels: 62.05, 60.60, 60.00.

 

The main scenario - a decline to 62.05.

 

An alternative scenario - a breakdown of resistance at 63.20 and an increase towards 64.40.

 

The fundamental outlook is neutral. We consider quick shorts from the level of 63.20.

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