Current trend

Prices for benchmark Brent Crude Oil are trading at 82.17, maintaining a local upward trend amid reports from China and the United States.

Thus, China purchased 88.3M tons of oil and 22.1M tons of natural gas in January and February, increasing supplies by 5.1% and 23.6%, respectively, practically neutralizing market concerns about falling fuel demand. In addition, US strategic reserves will be replenished by 3.0M barrels for delivery from September 1 to September 30, which will be the fifth such deal. In the last week of February, the figure increased by 0.7M barrels to 360.96M barrels, which is still the lowest since 1983.

As for the local dynamics of the asset, this week, the American Petroleum Institute (API) reported an increase in reserves by 0.423M barrels after 8.428M barrels earlier, and according to yesterday’s report from the Energy Information Administration of the US Department of Energy (EIA), an increase of 1.376M barrels was recorded against 4.199M barrels a week earlier.

Support and resistance

On the daily chart, the trading instrument is moving in a global corrective trend, heading towards the resistance line of the local ascending corridor 87.00–81.20.

Technical indicators support a local correction, maintaining a global buy signal: fast EMAs of the Alligator indicator are above the signal line, and the AO histogram forms ascending bars in the buy zone.

Resistance levels: 83.60, 87.20.

Support levels: 81.40, 78.30.

Trading tips

Long positions may be opened after the consolidation above 83.60, with the target at 87.20. Stop loss – 81.00. Implementation period: 7 days or more.

Short positions may be opened after the consolidation below 81.40, with the target at 78.30. Stop loss – 83.00.