Brent: Review
1. Current trend
Yesterday world prices for crude oil Brent rose by 0.85 USD and reached 109.82 USD per barrel. This rise was caused by the positive US news. It became known that retail sale in the USA increased by 0.2% in July. The index has been rising for the fourth consecutive month.
As of the morning of 14.08 2013 oil has slightly fallen in price amid concerns that the US Department of Energy will report that reduction in oil reserves is not too significant.
Today, official data on the reserves oil and oil products by US Department of Energy will become known. According to the forecast reserves of crude oil will reduce by 1.4-1.6 million barrels, stocks of gasoline will decrease by 1.9-2.1 million barrels, and that of distillate will drop by 1.0-1.1 million. Investors’ fears are based on publication of preliminary data from API. According to API estimates, crude oil reserves reduced by 999 thousand barrels, while inventories of gasoline increased by 1.7 million barrels, distillate inventories also increased by 1.1 million barrels.
2. Levels of support and resistance
Technical indicators show that the pair is experiencing correction, which followed after the growth, which lasted for several sessions in a row and investors have started to take profit. The first level on the way of bears will be level of 23.6 Fibonacci ((109.10). If correction continues, the next level will be 108.60 and after that level of 50.0 Fibonacci. Strong support level is 107.50. Resistance level is at the psychologically important mark of 110.00 USD per barrel.
Anton Karat
Analyst of LiteForex Group of Companies.