Buyers opened the way to $125

On Wednesday, June 8, at the end of the day, a barrel of Brent rose by 2.53% to $123.82. As soon as the buyers passed the $121 resistance, the price accelerated to $124.36. On a bullish technical factor, the market ignored the increase in US oil inventories.

US oil inventories increased by 2 million barrels over the past week (the forecast was -2.9 million barrels). Gasoline inventories fell by 0.8 million barrels, while distillate stocks rose by 2.6 million barrels.

Market participants are buying oil futures on expectations of a recovery in demand in China amid easing of quarantine, an upcoming strike in Norway, as well as a decrease in production in Russia due to sanctions.

Norwegian oil workers are planning to go on strike from June 12 because of wages, which will jeopardize the shutdown of part of the oil production capacity. Union members Industrial Energi and Lederne intend to go on strike at 10 fixed offshore drilling platforms. The country produces about 3 million barrels. oil per year. Most of the oil is exported. Stopping production will cause a price rally in the market.

On Thursday, June 9, at auction in Asia, Brent oil costs $124 per barrel. Target levels for buyers are $125 and $135. If the price does not immediately pass the $125 level, then the continuation of growth will be through a correction.