ADS Securities presents Crude oil prices forecast ahead US Oil Inventories report. The analysts foresee the positive momentum in the short-term.
1 June, ADS Securities – Yesterday, the Brent crude plunged for the second successive session as news of a rebound in Libyan oil production increased worries about a global oversupply despite OPEC’s pact to extend output cuts last week. However, early losses were trimmed after US crude oil inventories fell significantly more than expected.
Crude oil prices forecast ahead US Oil Inventories report
Currently, the commodity is trading with an upside tone on the 1H chart, hinting at positive momentum in the short-term. Besides, the MACD indicator is sharply pointing north, further confirming the above stance. Key resistance is placed at the $51.55 where EMA 55 is placed, followed by the $51.80 and $52.20 where EMA 200 is trading.
A break above the latter might lead to positivity in the Brent crude. On the downside, key support is positioned at the $50.75 level, followed by the $50.30 and crucial $50.00 levels.
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