The oil price looks optimistic. What are the reasons?
Update for oil market
The oil traders are awaiting the release of crude oil inventories at 17:30 MT time. According to the forecasts, the number of barrels will advance by 2 million. If the actual level is higher, the oil prices will go down.
- The price for WTI has been trading within a descending channel. At the beginning of the trading day, it has failed to overcome the $54.2 resistance level. If the actual data by the Energy Information Administration shows the lower number of inventories, the price for WTI will break the $54.2 level and target the next resistance at $54.68. In case of an alternative scenario, the price for WTI will slide to the $53.4 level. The next support will be placed at $52.85.
- Brent’s price has fallen towards the support level at $58.75. If the price overcomes this level, the next support will be placed at $58.5. After that, reaching the $58 level seems possible. From the upside, the first resistance level will lie at $59.4. The next resistance will be placed at $59.84.
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.