Brent crude prices continue their correctional movement, trading at 68.00 after another attempt to gain a foothold above the key level of 70.00.
Analysts point to possible significant progress in negotiations between the United States and Iran on the renewal of the nuclear deal. If the parties are able to agree, and the US authorities will not extend the sanctions against Tehran, this will allow Iran to significantly increase the supply of cheap “black gold” to the world market.
Yesterday, the American Petroleum Institute (API) released data on weekly stocks, which increased by 0.620 million barrels, down from analysts’ expected growth of 1.680 million. The Energy Information Administration (EIA) of the US Department of Energy will publish its report today, which is increase in reserves at the level of 1.623 mln. However, if the actual data show a decrease in the indicator, the local trend in the asset may again change to an upward one.
Support and resistance levels
On the local chart, the asset continues to trade close to the level of the global maximum, forming a sideways channel with the boundaries of 70.00–66.50.
Technical indicators are in a state of uncertainty: the fast EMA of the alligator indicator is below the signal line, and the histogram of the AO oscillator has moved into the sell zone, forming the first bar below the zero level.
Resistance levels: 70.20, 74.00
Support levels: 66.70, 63.00
Market forecasts, analytics and stock news