Today, prices for Brent and WTI are up by more than 1.5%. Investors react to positive data on US oil reserves from API.
According to API data, crude oil inventories fell by 5.1 million barrels to 482 million barrels over the week. Experts polled by Reuters were expecting a more modest reduction of 0.913 million barrels.
Additional support for the market is provided earlier this week by reports of successful trials of vaccines against coronavirus. Investors are hoping for a quick victory over the pandemic and a quick recovery in the global economy and energy demand. In response to this, oil prices have already increased by more than 10% this week. However, in our view, the prospects for further growth in oil prices remain limited, as the overall forecast for fuel demand remains uncertain amid the imposed restrictions on movement in Europe and the United States. Demand prospects remain weak in the short term, and energy demand may take much longer than expected to recover.
On the chart, the price continues to move upward and has approached a very strong resistance area formed between 42.80 and 43.75. Bullish momentum here could slow down significantly.
The main scenario - an increase to 42.80 and a rollback downward.
An alternative scenario - a breakdown of the resistance at 42.80 and an increase to 43.75.
The current fundamental outlook is moderately positive. We consider longs in the area of 41.60 level.
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