Brent crude oil is trading above $64.0 per barrel, but bulls have not been able to overcome strong resistance level of $64.4 for about a week. The price range during this time is $63.8-64.4. A weekly consolidation after an uptrend forms a flag figure, which is a figure of a trend continuation. Therefore, from the point of view of technical analysis, it is more likely that the bull trend will continue with a possible target in the range of $ 66.0-66.6 per barrel.
Over the past week, oil only once left $63.8-64.4 channel. The price pulsed down to $63.0 at the time of publication of crude oil in the United States, but soon returned to its current range. Oil reserves grew by 822 thousand barrels per week, gasoline - by 5,4 million barrels and distillates - by 4,1 million barrels. The consensus forecast implied a decrease in oil reserves by 2.8 million barrels, an increase in gasoline reserves by 2.5 million barrels, and distillates by 1.6 million barrels. The instant buyback of such data also confirms the bullish mood of the market.
Also, on Wednesday, OPEC analysts released a new report. In it, they confirmed the forecast for the oil production growth in the USA. It is expected that in 2020 it will reach 13.2 million bpd after 12.19 million, which is expected by the end of the current year. At the same time, OPEC expects a small deficit in the oil market next year.