Would you like to trade some oil? If the answer is yes, you’ve clicked on the right article. The week is going to be very eventful for oil traders, indeed. At first, there will be the release of crude oil inventories by the EIA today at 17:30 MT time. According to the forecast, the EIA will announce the decline of 1.6 million barrels held in inventories of commercial firms. The lower actual level will provide support to the oil prices. The release by EIA will be crucial for the oil market ahead of the OPEC meeting tomorrow, where the oil-producing countries are expected to announce deeper output cuts. The other positive factor is the US-China phase one trade deal, which is expected to be signed soon.
Let’s look at the charts of Brent and WTI to understand the current situation in the market.
Brent price is looking for the recovery
On H4, the price of Brent is having a bullish session as the price has been moving above the 200-period SMA and has tested the $62.08 level. If there are no disappointing surprises, we may expect the breakout of the $62.08 level and the rise towards the next resistance level at $62.5. The Stochastic oscillator has not entered the overbought zone yet, that is why bulls may keep control of the market. If the release of crude oil inventories comes out higher than the forecasts, Brent’s price will correct to the downside towards the $60.75 level.
To trade Brent with FBS you need to choose BRN-20G in MT4
WTI has met the 100-period SMA
The price of WTI has managed to stick above the 200-period SMA on H4. But that was not the final action for the crude’s price, as bulls have pushed it towards the 100-period SMA at $57.20. In case of a breakout of this level, the further rise is expected to be limited by the $57.4 level. From the downside, the first support is placed at 56.6.
To trade WTI with FBS you need to choose WTI-20F in MT4
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