Oil Prices Rise On Trump’s Health Improvement

brent crude oil price chart

Oil prices climbed up as investors reacted positively to the health improvement of US President Donald Trump. The price rose to the 42.45 area but the dynamics have slowed down now, as the market has come under the influence of several opposite factors. However, the bull run was constrained by Trump’s yesterday’s decision to end negotiations with Democrats on new financial incentives for the American economy.

Additional pressure is created by the API report, according to which, US energy reserves increased by 0.9151 million. On the other hand, hurricane Delta, which forced to suspend production on some of the Gulf of Mexico rigs, hinders the decline. Also, the course is supported by a strike of oil workers in Norway, which could reduce the country’s production capacity by more than 330K barrels, or about 8% of total production.

In the evening, investors await the publication of data on US oil reserves from the EIA. It is predicted that oil reserves may rise by 0.294 million barrels, which may put additional pressure on the instrument.

The price broke above Bollinger Bands midline and moves towards 42.19 (Murrey [3/8]). Its breakdown will let it grow to 43.75 (Murrey [4/8]) and 45.30 (Murrey [5/8]). 40.62 (Murrey [2/8]) is the key “bearish” level. After consolidation below it, the instrument may fall to 39.06 (Murrey [1/8]) and 38.37 (October lows).

Technical indicators reflect the possibility of growth. Stochastic reversed upwards. MACD decreases in the negative zone.

Resistance levels: 42.19, 43.75, 45.30.

Support levels: 40.62, 39.06, 38.37.

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