The oil price looks optimistic. What are the reasons?
Oil market updates on November 14
Today, the oil prices may move on the release of crude oil inventories at 18:00 MT time. The analysts forecast the number of barrels held in the inventories of the American commercial firms to advance by 1.5 million.
- If the actual number of barrels is higher than the expectations, the WTI and Brent prices will go down;
- On the other hand, lower-than-expected figures will push the prices for crude higher.
What is the situation in the market right now?
The price for Brent is having a bullish session. On H4, it has been testing the highs above the resistance at $63.03. If the price is supported by the lower-than-expected release, the break of this level will happen. After that, bulls will focus on reaching the next target at $63.40. The next resistance will lie at $63.90. On the other hand, a higher-than-expected number of barrels will pull the price for Brent below the $62.53 level. The next support will be placed at $62.
As for WTI, its price has been testing the resistance at $57.7 on H4 since the start of the trading day. The breakout of this level will help bulls to push the price for crude upwards to the $58.08 level. As far as this level will be reached, bulls will try to reach the next one at $58.6. From the downside, it is recommended to keep an eye on the $57.3 level. The great increase in the number of barrels may help bears to overcome that level and focus on reaching the support at $56.8 (50-period SMA).
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.
The US dollar’s weakness offered a boost to emerging-market currencies and oil.