Brent expected to break $121

On Tuesday, June 7, oil trading ended with growth. A barrel of Brent rose 0.39% to $120.75. The price fell in the American session to $118.55, but quickly recovered. Market participants are nervous around the $120-121 resistance zone. Evening report of the American Petroleum Institute (API) also did not inspire confidence in buyers.

The latest API data showed that last week oil inventories increased by 1.845 million barrels (forecast was -1.9 million barrels), gasoline inventories - by 1.821 million barrels (forecast was -1.1 million barrels), distillate inventories - by 3.376 million barrels (forecast was +1.1 million barrels).

On Wednesday, June 8, at auction in Asia, oil costs $120 per barrel. The technical picture is favorable for the continuation of the upward movement to the level of $123. The activity of buyers is constrained by the strengthening of the dollar and the decline in futures for US stock indices. We expect a surge in volatility at the American session after the release of the official report of the US Department of Energy on stocks of oil and petroleum products