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Oil prices renewed multi-month highs

Since the beginning of trading on Monday, oil prices have risen by more than 2%. The price of Brent for the first time since the beginning of the pandemic rose above $ 70, and the cost of WTI renewed the highs in almost 2.5 years of trading.

Locally, the driver for the growth of quotations was the reports of the Houthi attack on the oil infrastructure in Saudi Arabia. This information was confirmed by officials from the country's energy ministry. The drone attack was carried out on the oil terminal of the large port of Ras Tanura. A spokesman for the Department of Energy noted that the attack did not cause significant damage.

The mid-term driver for the growth of quotations remains the OPEC + decision, unexpected for many investors, to extend the current restrictions on oil production and the decision of Saudi Arabia to extend the voluntary production cut by 1 million barrels. per day for another 1 month.

At the same time, the prospects for further growth in oil prices are unclear. Despite the skyrocketing oil prices, Saudi Arabia's oil minister expressed doubts about a recovery in energy demand in the near term. The energy minister of India, the third largest importer of crude oil, also spoke about possible problems with demand. In particular, he noted that higher prices could threaten the recovery of consumption in some countries.

The bullish trend continues to develop on the chart. The WTI price approached the level of 68.00. We do not see the formation of strong reversal signals so far, therefore, an upward movement in this instrument remains a priority, but it is already quite dangerous to consider buying at current levels.

  • Resistance levels: 68.00, 69.00, 70.00.
  • Support levels: 67.00, 66.00, 64.00.

The main scenario is a slight decline below 67.00 and an increase above 68.00.

Alternative scenario - consolidation below 67.00 and a decline to 66.00.

The current fundamental outlook is neutral. We are considering longs from the levels of 67.00 and 66.00.

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