Oil prices are rising on Tuesday amid increased economic support measures in the United States. An additional driver of growth is the situation on stock exchanges. Asian indices session ended with a solid growth. At the start of the EU session, European indices are in the green zone.
Another bullish driver for oil prices is the USD dynamics. USD decreased by 1.2% since early this morning. Oil and other commodity assets are becoming cheaper for foreign investors.
Nevertheless, many experts warn traders against excessive optimism. Most likely, in the near future, market volatility will remain high. Even in the case of quarantine cancellation and partial restoration of energy demand, the imbalance in the direction of excess supply remains high due to the termination of the Vienna agreement to limit production from 2016.
Today, Barclays analysts reported a decrease in forecasts for oil prices by $12. It is expected that in 2020 the average price of Brent will be $31, and WTI $28.
Regarding the chart, we observe a correction in price growth. After the breakdown of resistance at the level of 23.20, the next target for the bulls is the 25.75 mark.
The main scenario - an increase towards 25.75 and a downward pullback.
An alternative scenario - a breakdown of resistance at the level of 25.75 and an increase towards 27.50.
The fundamental outlook is neutral. We consider shorts from the levels of 25.75 and 27.50.
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