Oil prices traded higher on Tuesday, June 8. The price action for Brent started out at $71.2/bbl. Prices came under pressure in morning trading and tested the $70.5 level several times. However, after the North American session got underway, prices reversed to the upside, reached $72.2 by late afternoon, and closed the day slightly lower, near $71.9. Prices drew support from the API report, which showed a 2.10 mln bbl drawdown after declining by 5.36 mln bbl a week earlier.
Prices continued to climb on Wednesday morning, with Brent topping out at $72.6, the highest since May 2019, before dipping to $72.4. We see the Brent price moving in the range of $71.7-72.7 today. The medium-term range for Brent is still $64.5-72.7. A possible breach of the $72.7 resistance level would mean a breakout to new highs not seen since April 2019. In this case, we could see a rally up to $74.7.
The EIA weekly petroleum status report will be released after the North American session opens. Experts are looking for a 2.04 mln bbl draw after a reduction of 5.08 mln bbl in the previous week.