Oil today: oil is near annual highs
On Wednesday, oil prices are traded with a strengthening on maintaining optimistic sentiment. In addition to maintaining optimism caused by the expectation of a reduction in oil reserves in the US and the growth of long positions in oil, the support for oil is exacerbated by the growing political tension in Iran, which may spread from cities to oil pipelines. As a result, it is necessary to expect a breakdown in the supply of oil from this region.
In addition to geopolitics, oil is also supported by technical factors, namely, the record value of open long oil positions and the dynamics of the reduction in oil reserves in the United States. So, from the API data the reduction of oil is expected for the fifth week in a row. The limiting factor for oil is only its overbought.
Recommended for reading: Technical analysis.
- The nearest resistance levels: for WTI – 61.00 and 61.50 $ per barrel, for Brent – 67.50 and 68.00 $ per barrel.
- Support levels are: for WTI – 60.50 and 60.00 $ per barrel, for Brent – 66.50 and 66.00 $ per barrel.
WTI chart, current price – 60.70 $
Brent chart, current price – 66.90 $
Hanzenko Anton