Brent Crude Oil: US rejection of Russian oil supports prices
Current trend
Prices on the oil market continue to rise. On Monday, quotes rose above 135.00 but then corrected downwards. At present, the positive dynamics of the instrument have resumed against the backdrop of the US imposing a ban on the import of "black gold" from Russia. The UK authorities announced similar measures planned to be implemented by the end of this year. The EU expects to abandon Russian oil even later, as it cannot yet find an adequate replacement. According to experts from The Goldman Sachs Group Inc., last year, Russia provided 11% of the world's energy consumption, so the current actions of the US administration cause investors to fear that the shortage of "black gold" in the market will increase and push prices up.
In the medium term, the trend towards long-term growth is unlikely to change, especially since the participants of the OPEC+ agreement are not in a hurry and cannot increase oil production due to the lack of technical ability. Under these conditions, the US administration is betting on negotiations with Iran and releasing part of the strategic reserves for sale but the effectiveness of these steps to curb the growth of quotations is still doubtful. For weeks, US officials have been saying that the "nuclear deal" is close to being finalized but no deal has yet been signed. Also, after the sanctions restrictions are lifted from Iran, it will take a long time to expand production capacities and increase energy supplies to the market. The sale by consumers, led by the US, of 60M barrels of oil from reserves in the current environment may lead to a price correction but is unlikely to reverse the uptrend.
The growth dynamics of Brent Crude Oil quotations may slow down soon, as spring has begun in the main consumer countries, and at this time, the need for active use of energy carriers is traditionally reduced.
Support and resistance
The price consolidated above 125.00 (Murrey [6/8]), which allows growth to 137.50 (Murrey [7/8]), 140.00, 150.00 (Murrey [8/8]). After a reverse breakdown of 125.00, a correction to the area of 112.50 (Murrey [5/8]) is not ruled out but its potential looks limited since the indicators generally signal the continuation of the upward trend: Bollinger bands reverse upwards, and the MACD histogram grows in the positive zone.
Resistance levels: 137.50, 140.00, 150.00.
Support levels: 125.00, 112.50, 100.00.
Prices on the oil market continue to rise. On Monday, quotes rose above 135.00 but then corrected downwards. At present, the positive dynamics of the instrument have resumed against the backdrop of the US imposing a ban on the import of "black gold" from Russia. The UK authorities announced similar measures planned to be implemented by the end of this year. The EU expects to abandon Russian oil even later, as it cannot yet find an adequate replacement. According to experts from The Goldman Sachs Group Inc., last year, Russia provided 11% of the world's energy consumption, so the current actions of the US administration cause investors to fear that the shortage of "black gold" in the market will increase and push prices up.
In the medium term, the trend towards long-term growth is unlikely to change, especially since the participants of the OPEC+ agreement are not in a hurry and cannot increase oil production due to the lack of technical ability. Under these conditions, the US administration is betting on negotiations with Iran and releasing part of the strategic reserves for sale but the effectiveness of these steps to curb the growth of quotations is still doubtful. For weeks, US officials have been saying that the "nuclear deal" is close to being finalized but no deal has yet been signed. Also, after the sanctions restrictions are lifted from Iran, it will take a long time to expand production capacities and increase energy supplies to the market. The sale by consumers, led by the US, of 60M barrels of oil from reserves in the current environment may lead to a price correction but is unlikely to reverse the uptrend.
The growth dynamics of Brent Crude Oil quotations may slow down soon, as spring has begun in the main consumer countries, and at this time, the need for active use of energy carriers is traditionally reduced.
Support and resistance
The price consolidated above 125.00 (Murrey [6/8]), which allows growth to 137.50 (Murrey [7/8]), 140.00, 150.00 (Murrey [8/8]). After a reverse breakdown of 125.00, a correction to the area of 112.50 (Murrey [5/8]) is not ruled out but its potential looks limited since the indicators generally signal the continuation of the upward trend: Bollinger bands reverse upwards, and the MACD histogram grows in the positive zone.
Resistance levels: 137.50, 140.00, 150.00.
Support levels: 125.00, 112.50, 100.00.
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