Brent Crude Oil
After reaching another high on Wednesday, the price of Brent crude oil slightly corrected due to an increase in the number of gasoline stocks in the USA.
According to the official data of the Energy Information Administration (EIA) of the US Department of Energy, crude oil reserves fell by 5.241M barrels over the week, and gasoline ones increased by 7.046M barrels. The growth in fuel supplies is associated with poor weather conditions on the east coast of the USA. In addition, the artificial temporary increase in demand during the outage of the Colonial Pipeline last month due to a hacker attack affects.
Nevertheless, the position of oil looks quite strong in the long term. Fuel demand is on the rise globally due to the lifting of restrictions following the COVID-19 pandemic. The quotes are also supported by the continuing sanctions against Tehran. Investors believed that restrictions on Iranian exports would be lifted and, as a result, the oil supply to the world market would increase. However, US Secretary of State Antony Blinken said on Tuesday that even if Iran and the US return to the "nuclear deal", many US sanctions against Tehran will remain in place.
Support and resistance
The price is approaching the area of strong resistance levels 74.30 and 73.00, overcoming which will allow the asset to grow to 80.00. Holding the resistances will lead to a correction with the target of 69.60.
The medium-term trend is upward. Target zone 2 (70.18-69.71) was broken out last week. The target for the next few weeks is target zone 3 (74.88-74.41). Key support for the trend is shifting to 68.00-67.51.