flag-gb flag-my flag-zh flag-id flag-th flag-vi

Oil is on the rise after the publication of API stock data

Oil demonstrates positive dynamics after the publication of oil reserves data from API. The inventory level unexpectedly fell by 8.2 million barrels (with a forecast of -2.7 mln barrels), which indirectly indicates the restoration of energy demand, despite the further spread of coronavirus and new restrictive measures.

 

Another positive news for the market was a survey conducted by Reuters, which showed that OPEC countries reduced production to the lowest level in two decades. The countries participating in the cartel in June produced approximately 22.6 million barrels per day, which is 1.9 million barrels lower than in May. This data indicates that OPEC countries have complied with the terms of the agreement to limit production by 107%.

 

In general, macroeconomic statistics from key regions of the world continue to exert a positive influence on the oil market. Recently published data from China, the United States and Europe indicates a recovery in activity of the key economic sectors. Considering the above, investors expect a further recovery in energy demand.

 

Today the market will be focused on the weekly EIA data. A decrease in reserves of 0.7 million barrels is expected. The API data increases the likelihood that contraction will be stronger. The market may continue to move up.

 

Regarding the chart, we note the increase in upward pressure on the level of 39.75. Today we are expecting a breakdown of this mark and growth to 41.10.

 

  • Resistance levels: 39.75, 41.10, 42.00.

 

  • Support levels: 38.50, 37.00, 34.50.

 

The main scenario - a breakdown of resistance at 39.75 and an increase to 41.10.

 

An alternative scenario - a consolidation in the range of 38.50-39.75.

 

The current fundamental outlook is moderately positive. We would consider longs from the level of 38.90.

Latest news

Deposit Bonus 200%

2021-04-13 10:05:09

Only from April 12, 2021, to May 14, 2021, Deposit Bonus 200% is available for all FortFS clients! Use the advantage to engage for the unique offer within a limited period: activate the deposit bonus and get up to 200% on the deposit amount on your trading account! How to get a Deposit Bonus of […]

Reduced spreads for popular pairs

2021-02-11 15:07:39

FortFS wishes all traders a Happy Chinese New Year! Only from February 8 to March 12, 2021, we reduce spreads for the 4 most popular trading pairs. New values*: EURUSDf: 0.8 GBPUSDf: 0.9 USDJPYf: 1.0 XAUUSDf: 3.5 *These values are valid only for FLEX accounts Hurry up to take advantage of the offer! Learn more about spreads: https://www.fortfs.com/clients/specifications