Oil prices are continuing to show positive corrective movements after a fall on Monday. This morning a barrel of Brent is trading at $50.59 (+1.0%). WTI with September delivery has increased to $46.27 (+1.1%) per barrel.
American oil reserve data was published yesterday and it showed a fall of 2.4 million barrels against an expected 1.6 million barrel fall. This evening will see the same report from the EIA. It’s expected that reserves will increase by 1.494 million barrels. It’s worth having a look at the extraction volumes. For the moment it seems that the divergent information of last week isn’t being confirmed. This is actually good for the commodities market: it leaves room for correction.
From a technical analysis point of view, Brent’s strong support lies at $50, but since it’s already been tested, it’s not worth expecting that it will be able to withstand another bear attack. Pressure on the quotes could strengthen the USD against the euro on the Forex market. The stronger the dollar, the more the pressure will be heaped onto oil prices.
On Wednesday the price of a barrel of Brent will be in a range of $50.20-50.75. Any further growth will need to have real reason behind it.