During the Asian trading session, oil prices were in the red zone. The situation on stock markets put moderate pressure on risky assets. Major indexes showed mixed trading dynamics. Investors also played on Reuters reports that OPEC countries may increase production by 0.5 million barrels per day amid continuing growth in energy prices in April.
At the beginning of the European session, oil prices moved into the green trading zone. The prices were supported by news from the US, which calculates the damage from a cold snap in Texas and other states. Many mining companies were forced to suspend production. Some experts estimate that recovery can take anywhere from a few days to several weeks.
Texas produces more oil and natural gas than any other US state. Due to the nature of the weather conditions, the Texas mining companies, unlike the residents of North Dakota and Alaska, are not adapted to the low temperatures that are observed now. Due to a severe cold snap and a shortage of electricity, not only oil production, but also oil refining suffered. Many processing plants have partially suspended their activities.
Yesterday the price tested the support at 59.35. Buyers kept their positions and today the price is again approaching the local maximum around 60.75. We look forward to testing the 61.00 level.
The main scenario is growth to 61.00.
An alternative scenario is a decline below 59.95 and a pullback below 59.35.
The current fundamental outlook is moderately positive. We consider longs from the level of 59.95.
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