Oil: buyers ready to pass $107 resistance

On Monday, July 25, oil trading ended with growth. A barrel of Brent has risen in price by
1.19%, up to $104.81. The price is trading in a limited range as expectations of a global recession are on one side of the scale, and a reduction in Russian oil exports due to Western sanctions is on the other.

Now the attention of investors is riveted to the meeting of the US Federal Reserve, as a result of which the US Central Bank may significantly raise interest rates by 100 bp. A serious tightening of monetary policy by the Fed, according to many experts, could lead to a recession in the US economy. At the press conference, J. Powell will tell us about the future steps of the Fed, which will become the basis for the pricing of commodity assets. If the actual value is below one, the US economy is officially in recession. Yellen proposed to consider such an event not a recession, but a "forced correction" before a new growth (substitution of concepts).

On Tuesday, July 26, at auction in Asia, Brent oil costs $106.59 per barrel. For the oil market, news on the ceiling for Russian oil is of the greatest interest. US GDP data for the 2nd quarter will be released on Thursday. Based on technical analysis, the road to the $110 level is open to buyers.