Oil prices recover after yesterday's decline
Oil prices have been rising by more than 1% today, investors are reacting positively to the data on oil reserves from the American Petroleum Institute (API).
For the week ended August 7, commercial oil reserves fell by 4.4 million barrels. Experts had expected a decline of 3.3 million barrels. The data indicate that the difficult epidemiological situation in some states has had little impact on the level of energy demand for the country as a whole.
Investors are also responding positively to reports on the registration of the first coronavirus vaccine in Russia. Investors hope for faster development of vaccines in other countries, which will lead to an improvement in the global economic situation and a recovery in energy demand.
Political uncertainty in the USA continues to have a negative impact on the market. Congressmen were never able to agree on a new package of economic aid programs.
Today, all market attention will be directed to the EIA's weekly report on oil and petroleum products reserves. Experts predict a decline of 2.875 million barrels. API data increases the likelihood of more optimistic data being released, which could provide strong support for the oil market.
Regarding the chart, the bulls are trying to resume upward movement. The closest target is the level of 42.45. In case of breakdown of this mark, the next target will be the level 42.90.
· Resistance levels: 42.42, 42.90, 43.75.
· Support levels: 41.40, 40.40, 39.80.
The main scenario - an increase to 42.45 and a decline to 41.40.
An alternative scenario - a breakdown of resistance at 42.45 and an increase to 42.90.
The current fundamental outlook is moderately positive. We are considering longs from the level of 41.40.
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