Oil prices have risen on Wednesday as China reported the lowest daily number of new cases of coronavirus since January 24. This gives investors hope that the Chinese authorities will be able to take the epidemic under control and localize the spread of the disease. Improving the situation in China will help restore global demand for energy from the largest consumer.
Earlier, the two largest oil refineries in China announced a decrease in refining volumes by 0.94 million barrels per day due to reduced consumption.
A serious deterrent to the market now is the data of weekly industry statistics from the United States. According to the API report for the reporting week, oil reserves in the country increased by 6 million barrels. Experts expect the US Department of Energy to announce an increase in reserves of 3 million barrels today, but the API data shows that actual values may be higher than this figure.
Regarding the chart, a breakdown of resistance occurred at the level of 50.50, so in the near future we can expect the development of an upward correctional movement in the direction of the level of 51.25.
Resistance levels: 51.25, 52.00, 53.10.
Support levels: 49.30, 48.90, 48.50.
The main scenario - a consolidation above the level of 50.50 and growth towards 51.25.
An alternative scenario - a consolidation at the level of 50.50 and a decline towards 49.30.
The fundamental outlook is neutral. Despite local growth, intraday priority is still given to shorts, which should be considered at 51.25 and 52.00.
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