Oil now

At the opening of trading on Wednesday, the main oil brands are traded with a slight strengthening of the correction after yesterday’s decline. At the same time, they remain near the lows of the year, and are limited to the downtrend.

The main driver for the sale of oil continues to be the risks of reducing oil consumption against the background of a slowdown in global economy and growth in oil production in the United States, as it was indicated by data on the growth of oil inventories in the United States. Thus, the last API report showed a moderate growth of oil inventories for the week, despite the expectation of its reduction. It also served as an additional limiting factor for the correction of oil.

Technically, the main oil brands trade near annual lows, forming a very narrow flat, which acts as a corrective movement, but it may  indicate also the formation of the day due to a decrease in activity before the Christmas and New Year holidays.

Look Technical Analysis of Oil.

At the moment, Brent crude is trading at $ 56.70, an increase of about + 0.80% in price.

WTI crude oil trades at $ 46.90, an increase of about + 0.70% in price.

Read also: “Candlestick analysis. Continuation patterns.”

Dani Leviant

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