Brent crude oil has been growing for 4 sessions in a row. Yesterday, oil quotes reached a level of 58.81. US news was the main growth driver. The world's largest oil consumer removed 353 wells from service and the number of operating ones has become the least in the last 3 years. As Reuters news agency reports, the growth has been catalysed by the news about decreasing investments and the number of operating drill units in the USA. Though the market sentiment, apparently, has changed, volatility will remain high.
However, oil quotes are under strong pressure owing to decreasing demand and oversupply. The economy rates of China, the second largest oil consumer, cannot be regarded as optimistic either. The country's non-manufacturing sector growth slowed down to 6-month lows. In the meanwhile, US oil stocks grew by 6.1 million barrels instead of the expected 3.6 million.
Support and resistance
Support levels: 56.20 (23,6% Fibonacci retracement), 54.65 (38,2% Fibonacci retracement), 53.20 (50% Fibonacci retracement), 51.80, (61,8% Fibonacci retracement), 50.00 (important psychological level).
Resistance levels: 58.81 (yesterday's maximum), 60.00 (important psychological level), 61.53 (24 December's maximum), 63.49 (18 December's maximum).
Long positions should be opened after the price overcomes a level of 58.90 with a target at 60.00. Sell below a level of 56.00 with targets at 54.70 and 53.30.Publication source