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Oil Trend: A Breakout Is Coming?

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Brent crude oil showed strong growth on Wednesday, having got over the 3-dollar range of $58.0-61.0, in which it has been traded for about a month. At the moment, bulls are trying to gain a foothold above the level of $61.0, and the price has come close to the line of the bearish downtrend, in which the asset has been declining since late April. If the upward movement continues and the price of a barrel exceeds $62.0, the current trend will be broken and quotes may to previous local highs and a 50% Fibo-level around $66.0.

Several factors supported the quotes at once. Russian Energy Minister said that in September Russia will reduce oil production to the level of the obligation under the OPEC+ agreement. Washington imposed new sanctions on Iran, an OPEC member country. There was information that China and the United States agreed to resume trade negotiations in early October in Washington. The falling US dollar also supports the growth, the DXY index lost 1.2% from its peak value of September 3.

The market also focuses on crude oil reserves, which the US Department of Energy release on Thursday after a Monday holiday. According to various sources, reserves are expected to decline by 2.5-3 million barrels. It is possible that the volatility caused by the news will make it possible for the bulls to reverse the downtrend.

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Source: https://olymptrade.com/
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