Oil updated its local low on Wednesday, and the price returned to January values. As was expected in the previous review, Brent crude got support at $56 per barrel. The asset was bought back and after consolidation on Thursday, bulls took the offensive on Friday. As a result, they are currently trying to break the $59 level, and the quotes are trading 5% above the local low. If the recovery trend continues, the $60 level will become a strong resistance and an important obstacle for the upward correction.
However, there are reasons for optimism. According to Bloomberg, Saudi Arabia plans to take active steps to maintain oil prices. The main and almost the only instrument is a further decrease in OPEC production beyond the agreed cuts of 1.2 million barrels per day.
Demand for petroleum products in the United States should remain until the end of the summer due to the car season, but the trade war between the United States and China is likely to make adjustments to global consumption and supplies. For instance, CNBC said China plans to drastically reduce US oil imports, which will affect the internal balance in the United States.