KMS

Good Afternoon,

  • Brent crude, the international benchmark, hit fresh five-month highs in Monday action, and U.S.-traded oil was tagging along in step, both boosted by signs that trade tensions are easing between the U.S. and China, as well as continued expectations for tighter global supplies.
  • The Saudi energy minister said on Monday it was premature to say whether a consensus existed among OPEC and its allies to extend oil supply cuts, but a meeting next month would be key. ‘Oil inventories remain higher than average, but the market is on its way towards rebalancing’, Falih added..
  • Russia, which is cutting oil output in tandem with OPEC, also said production cuts would stay in place at least until June, when Washington's next steps on reducing Iranian and Venezuelan oil exports become clearer
  • The United States has been increasing its own oil exports steeply, while U.S. President Donald Trump has been pressing OPEC to lower the price of the commodity by boosting production.
  • Data from oil-field services firm Baker Hughes showing that the number of U.S. oil rigs rose by 15 this week to 831 did nothing to dent market gains
  • Oil was also lifted last week when a stronger-than-expected rise in March nonfarm payrolls helped to soothe worries for energy demand. 

Brent oil price fluctuates above the main bullish channel’s support line, getting continuous positive support by the EMA50, this keeps our bullish overview valid for the short term.  If we continue with enough positive momentum, we could start to push towards  the price to visit 71.25 as a next main station. It is key for the bullish trend that prices hold above $70.00 to continue the expected bullish trend. The expected trading range for today is between $69.575 support and $71.25 resistance.

 Kind Regards,

 

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