Oil today: oil is under pressure
Oil quotes on Monday are under pressure of rising oil production in the US and strengthening of the US currency. As a result, the main oil brands maintain a downward trend, remaining under pressure of correction after a prolonged growth.
Thus, the main pressure on oil quotes is caused by the fears of a significant increase in oil production in the US, which has exceeded the psychological mark of 10 million barrels per day. Also, the number of active drilling rigs in the US increased by 6 units to the level of 756 over the past week, which confirms the existing concerns about oil production in the US.
On the other hand, forecasts on growth in demand and compliance with the OPEC agreement limit the decline in the cost of oil, despite the growth of the US currency, which increases the cost of oil exports.
Recommended for reading: Technical analysis.
- The nearest resistance levels: for WTI – 65.50 and 66.00 $ per barrel, for Brent – 68.00 and 68.50 $ per barrel.
- Support levels are: for WTI – 64.50 and 64.00 $ per barrel, for Brent – 67.30 and 66.50 $ per barrel.
WTI chart, current price – 64.90 $
Brent chart, current price – 67.70 $
Hanzenko Anton