Current trend
Yesterday, the price of crude oil Brent has reached the level of 107.94 USD per barrel. Positive dynamics of oil quotes was triggered by the rise in the global demand for black gold. According to International Energy Agency, given the current pace of the world economy recovery, demand for oil may increase by 1.3 million barrels per day this year. In 2013 oil consumption amounted to 91.2 million barrels a day; in 2012-90 million barrels a day. In addition, IMF issued a report saying that economic growth rate of the world economy will rise by 3.7% this year. Such forecast has become an additional incentive of the rise in oil price.
Support and resistance
Resistance levels are 107.00, 107.94 (yesterday’s highs) and 108.80 (Fibonacci retracement 50%). Support levels are the local lows of 106.20, 105.79 and 105.41.
Trading tips
It is advisable to open buy positions after breakdown of the level of 107.20 with the targets of 107.94 and 108.80. Pending orders to sell can be placed below the level of 106.70 with the targets of 106.20 and 105.80.
Andrey Cherkas
Analyst of LiteForex Group of Companies
