Oil today: oil is under pressure of the US production growth
On Monday, oil quotations remain under considerable pressure, which was caused by data on the growth of drilling activity in the US and an increase in production volumes.
- So, last week EIA published data on the number of drilling rigs, which amounted to 825 units, which corresponds to March 2015.
- Also, data on oil production in the US were published, which reached a historic high at 10.59 million barrels per day.
In addition to the growth in oil production, there is pressure from stock exchanges and possible risks of trade confrontation between the US and the euro area, which have also escalated recently.
At the same time, the oil market remains optimistic about the observance of OPEC’s agreement to limit production and the possibility of imposing sanctions against Iran, which have become a driver for updating oil highs.
The nearest resistance levels are (signals to sell oil): for WTI – 68.00 and 68.50 $ per barrel, for Brent – 74.00 and 74.50 $ per barrel. Support levels are (signals to buy oil): for WTI – 67.00 and 66.50 $ per barrel, for Brent – 73.00 and 72.50 $
Hanzenko Anton