Oil today: oil is under pressure of growth in drilling activity in the US
At the auction on Monday, oil quotations are trading with a slight decrease due to negative sentiment caused by data on the growth of drilling activity in the US. Data on drilling activity in the US over the past week showed an increase in the number of drilling rigs by 9 units, to the level of 738. This indicated a slowdown in the decline in drilling activity in the United States. Despite this, the dynamics of oil continues to be very positive due to the positive expectations from the reduction in oil production in OPEC.
Oil showed a decline at the beginning of the week, but further decline in oil quotations is limited to last week’s lows. In fact, for the second week, oil is trading in a sideways trend, and this dynamics will continue for the near future. Therefore, one should expect the resumption of purchases from local minimum.
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- The nearest resistance levels: for WTI – 57.50 and 58.00 $ per barrel, for Brent – 64.00 and 64.50 $ for barrel.
- Support levels: for WTI – 56.50 and 56.00 $ per barrel, for Brent – 63.00 and 62.50 $ per barrel.
Hanzenko Anton