Following long-term decline, the crude oil Brent had pushed off from the level of 106.25 on the daily chart. Probably from this level the pair will undergo technical correction, the target of which is at the level of 107.81 (Murray line 1/8). However, experts believe that the news that Libyan oil will return to the market put pressure on the price of Brent. The government of Libya said that oil production in the country has reached 470 barrels per day. On the other hand, oil inventories in the USA has grown by 0.4 million barrels, which had a negative impact on the oil market.
In Iraq situation is not as favourable as in Libya. It became known yesterday that rebels captures two oil fields, which probably prevented further decline in oil. Approximate volume of oil production in these fields is estimated at about 400 million barrels per day.
Support and resistance
The nearest resistance level is Murray line 1/8 (107.81). Support level is 106.25 (Murray line of 0/8).
It is recommended to open long positions after breakdown of the level of 107.00 with protective orders at 106.80 and the target of 107.80.Publication source