Brent crude oil found strong support at $69/b. The price continues to consolidate and most likely, bulls will make a new attempt to overcome the $70 level. If they succeed the upper limit of the current price channel will be broken, and the medium-term uptrend can easily head for $72. Sooner or later, the channel will be broken. Nevertheless, the bulls have more chances to do it than the bears.
The $69 level was tested just after the release of the Energy Information Administration (EIA) report on Wednesday. It said that inventories increased by 7.24 million barrels, while analysts had expected a decline of 0.425 million barrels. The US oil production figures also put the quotes under pressure. The EIA reported an increase of 100,000 barrels per day to a record 12.2 million barrels per day.
At the same time, gasoline stocks decreased by 1.78 million barrels, and distillates inventories fell by 2 million barrels. In anticipation of the beginning of the automobile season, which will begin soon, these data may become even more important than usual, and the increased demand for petroleum products will be able to reduce the excess of oil reserves.