Oil Today: Expecting data on the US Oil Reserves

After the upward movement of the oil market based on the data on the reduction of drilling activity in the US and the closure of the pipeline in the North Sea, closer to the opening of the American session, oil quotations went into the correction phase caused by the expectation of publication of data on oil reserves in the US. So, after the optimistic trades at the beginning of the day, the oil market switched to pessimistic expectations for the growth of oil reserves in the US.

Despite the fact that the growth in the number of drilling rigs in the US has slowed down, their number remains at the level of April 2015, which indicates the preservation of high volumes of production. Therefore, from the forthcoming API report the market expects the growth of oil reserves in the US.

Recommended for reading: Technical Analysis

• The nearest resistance levels: for WTI – 57.80 and 58.10 $ per barrel, for Brent – 63.90 and 64.50 $ per barrel.
• Support levels: for WTI – 57.10 and 56.60 $ per barrel, for Brent – 63.00 and 62.70 $ per barrel.

WTI chart, current price – $ 57.50

Brent chart, current price – $ 63.40

Hanzenko Anton