Since Wednesday, oil quotes continue to consolidate in the quite narrow zone of $58.0-59.5 per barrel. From a technical point of view, bulls are more likely to get out of this channel. The level of $59.5 has already been tested several times, and lows are forming a local uptrend on the hourly chart. In the medium term, the chart is also in the phase of moderate growth after updating the local minimum on August 7. If a break of $59.5 occurs, an important task for buyers will be to overcome $61.0. However, oil players are now very sensitive to fundamental factors, so market volatility is likely to remain at the current level or higher.
Local support for oil is provided by news from the Middle East. Last weekend, Houthi Yemeni rebels launched two drone attacks on a Saudi Aramco oil field and refinery. It is noteworthy that the attack occurred immediately after the statements of Saudi Arabia to support world oil prices by reducing production and other available means.