On Wednesday oil prices rose after the publication of data from the American Petroleum Institute (API). According to API data, oil stocks increased by 10 million barrels per week. Analysts had expected an increase of 10.6 million barrels.
Furthermore, investors positively assess the news from the United States, where the largest oil producers are considering reducing production. Regulators in the US state of Texas, the largest oil producer in the country, will hold a vote on May the 5th regarding whether to reduce production or not. North Dakota and Oklahoma are also evaluating the possibility of reducing production.
The positive impact on the market is reported by the fact that in some states of the USA, Europe, Australia, New Zealand and other countries, a gradual easing of quarantine measures is taking place. Some investors are hoping for a gradual recovery in energy demand. But the Minister of Energy of Russia warned the market against excessive optimism. He stated that there would be no quick solution to the problem of low prices and the oil market could begin to recover only in the second half of the year.
Regarding the economic calendar investors should closely follow the publication of data on the initial assessment of US GDP for the 1st quarter, the weekly report of the US Department of Energy and the results of the two-day meeting of the FOMC.
A correctional wave is developing on the chart. Buyers returned the price to the level of 15.00, which creates good prerequisites for the growth of quotations in the direction of the level of 17.00 and above.
The main scenario - growth towards 17.00
An alternative scenario - a decline at 15.00 towards 11.50.
The current fundamental outlook is moderately positive. We consider short-term longs from the level of 14.00.
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