API data on declining oil inventories supported the oil market, somewhat alleviating investor concerns about a weak recovery in demand amid the spread of COVID-19 in the United States.
Experts expected a decline in the level of reserves by 1.2 million barrels. The actual decline in the indicator exceeded 6.8 million barrels. Investors are optimistic about the publication of the weekly EIA report. Experts predicted an increase in reserves by 0.357 million barrels. These API reports increase the likelihood of more positive data for the market.
Investors are so far showing rather restrained optimism. For a confident recovery in oil prices, it is necessary to wait for a steady downward trend in oil and gasoline reserves. According to the latest data, there is a 25% decrease in the number of car travel in the United States and an almost 75% decrease in passenger air travel. Obviously, in this situation, the demand for fuel remains significantly lower than the levels of previous years. Refinery crude refining rates remain about 17% below the seasonal average over the past five years, according to the US Energy Information Administration.
Regarding the chart, trading is still constrained within the 40.75-41.75 flat. During the day, the situation on the chart has not fundamentally changed, so today we are expecting further flat movement.
The main scenario - consolidation in the range of 40.75-41.75.
An alternative scenario - a breakdown of support at 40.75 and a decline in the direction of 38.70.
The current fundamental outlook is neutral. We would consider both longs and shorts based on the borders of the price channel 40.75-41.75.
We are launching the long-awaited rewards program for all subscribers of our social networks – share posts with your friends and get money on your FortFS account as a reward! 🥇 The participants will get the following benefits: • Real money for reposts • The reward is available for withdrawal without restrictions • You can […]
Dear Traders, Make sure to receive $100 on your trading accounts only from the 20th to the 28th of August! No Deposit Bonus 100 USD is the best way to start trading and test all of the Company’s products! GET BONUS The bonus features: Withdrawal of up to 100 USD 75 lots of trading turnover […]