Brent Oil Could Continue To Soar
Yuri Papshev | Jan 28, 2022 06:59AM ET
Brent oil prices have come close to $90 per barrel for the first time since 2014, after the release of the Energy Information Administration (EIA) report by the US Department of Energy on Wednesday.
According to the Ministry of Energy, although commercial oil reserves increased by 2.377 million barrels in the reporting week (analysts expected them to decline by -0.728 million barrels), the total volume of oil and petroleum products reserves in the United States, including strategic reserves, fell to 1.78 billion barrels, the lowest since 2014.
In general, oil market analysts believe that energy prices will remain positive, staying above current levels, and oil prices may rise for the sixth week in a row. OPEC oil production remains below quotas as tensions between Russia, a major gas and oil producer, and Ukraine, through which large volumes of natural gas are shipped, fuel energy prices. In the event of interruptions in their supply, oil prices can accelerate their growth, even if the dollar further strengthens.
A breakdown of the local resistance level of 89.60 will lead to further price growth, and oil market analysts predict that the positive dynamics will continue against the backdrop of increased demand for energy and limited oil supplies by OPEC + countries.
The first signal for the implementation of this scenario will be a breakdown of the important short-term support level 86.73.
- Support levels: 86.73, 85.65, 82.69, 77.10, 74.65, 72.60, 62.00
- Resistance levels: 89.60, 90.00
Brent: Sell Stop 87.55 Stop-Loss 89.65. Take-Profit 87.00, 86.73, 85.65, 82.69, 77.10, 74.65, 72.60, 62.00
Buy Stop 89.65. Stop Loss 87.55. Take-Profit 90.00, 91.00, 92.00, 93.00, 95.00, 99.00
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.