The oil price looks optimistic. What are the reasons?
Oil market updates on November 27
Oil traders are awaiting the release of the weekly crude oil stocks change at 17:30 MT time.
As usual, it will show the supply situation in the oil market. According to analysts, the number of barrels held in the inventories of the commercial firms will decline by 0.5 billion. If the actual level is higher, the oil prices will fall. Let’s look at the charts of Brent and WTI ahead of the publication.
· The price of Brent has been moving up. It is trading at the highs of September. On H4, if the level of crude oil inventories comes out lower than the analysts’ expectations, the $64.62 level will be broken. In this case, there is a high chance of reaching the $65.16 level. On the other hand, if the number of barrels is bigger, the oil prices will fall to the $64.1 level. The next support will lie at $63.82. If this level is broken, the next support will be situated at $63.5. Keep an eye on the RSI oscillator. If it leaves the overbought zone, it may provide us a selling opportunity.
· WTI is following a similar scenario. At the moment of writing its price has been testing the $58.5 level. The next resistance in the focus of bulls lies at $59.06. The downward momentum will be limited by the $58.14 and $57.62 levels.
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.