SOLID ECN LLC
Solid ECN Representative
- Messages
- 514
During the morning session, Brent Crude Oil prices remain around 111 dollars per barrel. Quotes are moderately supported by expectations of a growing shortage of raw materials yesterday, the summer automobile season in the United States with the simultaneous opening of enterprises in China after the end of the quarantine caused by a new outbreak of COVID-19. Due to the deterioration of the geopolitical situation around Ukraine, the supply of energy resources on the market is noticeably declining, while OPEC+ is in no hurry to increase the current quotas for increasing hydrocarbon production. The cartel members are satisfied with the situation of a moderate, controlled deficit, which allows them to maintain a fairly high level of prices for oil and petroleum products.
The instrument was also supported by the published report from the Energy Information Administration of the US Department of Energy (EIA) on the dynamics of energy stocks in warehouses. Thus, for the week of May 20, the indicator fell by 1.019M barrels after a reduction of 3.394M barrels over the previous period. Analysts had expected a more modest decrease of 0.737M barrels.
On the daily chart, Bollinger bands are moving flat: the price range has not changed much since the beginning of the week, remaining quite spacious for the current level of activity in the market. The MACD indicator grows, keeping a poor buy signal (the histogram is above the signal line). Stochastic keeps a moderate upward direction but is near its highs, indicating that the instrument may become overbought in the ultra-short term.
Resistance levels: 112, 114.09, 115.50, 116.5 | Support levels: 109, 106, 102.57, 100