There is a downward correction in the oil market. Today the price of Brent crude fell to the mark of 100.00 dollars per barrel. However, the price has not gone below this psychologically significant level yet, returning to the zone above the support level of 102.00.
If the forecast for the resumption of growth is confirmed, then the nearest targets will be the resistance levels 105.27, 106.73. Breakdown of the local resistance level 109.30 will confirm the price return to the uptrend.
In an alternative scenario and in case of a breakdown of the support level 100.00, the downward correction may continue to the key long-term support levels 90.00, 85.75 with an intermediate target at the local support level 95.70.
At the same time, it is possible that now is the right time to enter long positions and resume buying.
Oil market analysts believe that the oil released from the world's strategic reserves will probably not be enough to make up for the missing supplies from Russia, while OPEC+ is in no hurry to increase production volumes, acting according to a previously agreed plan. The oil coalition believes that the oil market is currently well balanced, and the current volatility is caused by geopolitical events.
At the beginning of last month, Russian Deputy Prime Minister Alexander Novak said that Europe would not be able to quickly replace Russian oil, and the market price for oil would reach $300 per barrel or higher. What if he turns out to be right?
Support levels: 102.00, 100.00, 95.70, 90.00, 85.75, 77.30, 66.00
Resistance levels: 105.27, 106.73, 109.30, 114.00, 120.00, 130.00, 131.00
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Source: InstaForex
