Price of Brent (OIL) jumped above $65 per barrel today for the first time since late-January 2020. While OIL pulled back off the daily highs, it continues to trade within the resistance zone ranging around the aforementioned $65 mark. There are numerous factors supporting the rally on the oil market like OPEC+ actions, vaccination process or the US energy crisis to name a few. Worsening the situation in the United States is a major factor as arctic weather is said to have caused almost 40% of the US oil production to shut down. Looking at OIL from a technical point of view, we can see that price not only has reached the resistance zone at $65 but has also tested the long-term downward trendline. In case OIL breaks above it, the next resistance can be found at $68 mark. On the other hand, failure to break above could trigger a pullback towards the support at $60.
Oil traders should keep on guard today at 4:00 pm GMT as DOE will release a report on oil inventories. Market consensus expects oil stocks to drop by 2.2 million barrels but API estimates released yesterday pointed to a 5.8 million barrel decline.
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Source: xStation5
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