Trading news

Brent: general analysis

Current trend

The price of crude oil Brent has been falling since the beginning of this year. If international sanctions against Iran have been lifted, black gold will drop in price even further. Additional pressure on the Brent rate was caused by the US data on the increase in gasoline stocks by 6.2 billion barrels and the rise in the inventories of distillates by 5.8 billion barrels. One the reasons of the increase of fuel reserves is associated with the bad weather, which led to the cancellation of most international flights and abandoning of using personal vehicles.

At the same time oil quotes were supported by tense situation in Libya, where Energy Minister threatens to stop supplies if foreign companies do not stop buying oil from the rebels at the below market price. Price dumping can lead to the reduction of oil production and interruption of delivery, which will add confidence to the “bulls” at the commodity market.

Support and resistance

The instrument continues to trade in the downtrend. Quotes of Brent have reached the bottom limit of the trading channel at the level of 106.16. The nearest support level is 108.17

Trading tips 

Short positions are recommended after breakdown of support level of 106.00 with protective order at 106.30 and a target of 105.25.

 

Dmitry Agurbash

Analyst of LiteForex Group of Companies

 

Friday, 10 Jan, 2014 / 8:39

Source : https://www.liteforex.com/

Trading news

 

Equities and dollar cool after ISM data, showtime for BoE

· Euro/dollar trapped near $1.20 region, stocks drift after ISM survey [...]

Posted on Thursday, 06 May, 2021 / 9:15 under

BOE Interest Rate Decision: Keep Calm And Carry On?

Of the major central banks, the BOE is generally seen as the most likely to [...]

Posted on Wednesday, 05 May, 2021 / 2:10 under

Inflation fears put the US dollar in the spotlight

The dollar rose sharply on Wednesday, fueled by renewed sentiment about higher [...]

Posted on Wednesday, 05 May, 2021 / 12:29 under