Oil prices keep the upward movement vector. Investors are reacting positively to statements by the Biden administration about increasing stimulus measures that will help improve the situation with demand for energy.
Treasury candidate Janet Yellen has called on Congress to act ambitiously on bailout spending amid the coronavirus pandemic. Yellen's comments have bolstered investor hopes for the implementation of massive measures to support the US economy.
Against this backdrop, investors ignored the messages of the International Energy Agency (IEA), which cut the forecast for demand in the 1st quarter of 2021 by 0.58 million barrels per day. The IEA revised its forecast due to the continuing increase in the number of people infected with COVID-19 around the world, which has led to new restrictions on movement in Europe, America and Asia. Apparently, investors hope that the reduction in production from Saudi Arabia by 1 million barrels per day will fully offset the local decline in demand for energy resources and keep the market in balance.
Later, investors will closely monitor the publication of industry statistics from the United States on the dynamics of the level of oil reserves.
On the chart, the price broke through the resistance at 53.15. After a slight pullback, the bullish trend can be expected to continue towards the local high at 54.00.
The main scenario is a decline to 52.90 and an increase to 54.00.
An alternative scenario is a decline below 52.90 and a fall to 52.00.
The current fundamental outlook is moderately positive. We consider longs on a pullback to the level of 52.90
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