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WTI moved above $34

Oil prices maintain positive dynamics due to reports on the implementation of OPEC + agreements and hopes for a further recovery in energy demand.

 

The Russian Minister of Energy recently announced that the oil market will reach its balance state in June-July. According to Minister Novak, the growing demand for energy should help reduce the current world surplus by about 7-12 million barrels per day over the next two months. At the same time, the volume of oil production in Russia almost reached the target level of 8.5 million barrels per day. This level was set in the framework of the new OPEC + agreement on limiting the level of oil production.

 

A new meeting of OPEC + countries will be held in early June. Countries will discuss further plans to implement earlier agreements to reduce production.

 

Investors expect stabilization of the situation in the US oil market. According to a report released on Friday by Baker Hughes, the number of rigs in the US reached a record low of 318 units. This data indicates a decline in production in the medium term.

 

Bullish signals prevail on the chart. The price continues to move up. Resistance of the 34.00 level is broken. The next target for the bulls is the level of 35.70.

 

  • Resistance levels: 35.70, 36.50, 38.00.

 

  • Support levels: 32.10, 31.50, 30.30.

 

The main scenario - a consolidation above the level of 34.00 and growth in the direction of 35.70.

 

An alternative scenario - decline under the level of 34.00.

 

The current fundamental outlook is moderately positive. We would not advise entering the oil market at the moment. Considering longs at the current price levels is risky and there are no clear signals for shorts.

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