Oil prices rose on Wednesday after US industry data showed that US oil inventories fell more than expected and OPEC raised its forecast for oil demand. The market continues to be constrained by concerns about the COVID-19 pandemic.
According to API data, crude oil inventories dropped 3.6 million barrels over the week. The EIA report is expected to show a decrease in reserves by 2.9 million barrels.
On Tuesday, OPEC raised its forecast for growth in energy demand in 2021 due to the accelerated growth of the global economic recovery. The OPEC report also said that in mid-2020, oil reserves decreased significantly and this trend continues to develop. A significant increase in consumption in OPEC is expected in the 2nd and 3rd quarters of 2021.
OPEC's optimistic expectations are confirmed by the recently published macroeconomic data from the United States and China. The two largest economies in the world continue to recover from the crisis. But market concerns continue to be caused by reports of a third wave of the pandemic and emerging problems with the implementation of vaccination programs. On the eve it became known that the use of the Johnson & Johnson vaccine was temporarily suspended in the USA.
The chart is dominated by positive signals. The price has risen above the level of 60.00 and may continue to rise in the direction of the level of 61.85.
The main scenario is growth to 61.85.
An alternative scenario is a breakdown of the support at 59.65 and a decline to 57.20.
The current fundamental background is moderately positive. We are considering longs near the level of 59.70.
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