Oil: buyers retreated to take over

On Thursday, June 9, at the end of the day, a barrel of Brent oil fell by 0.75% to $122.89. Traders took a break before the publication of the US inflation report for May, which will be released at 15:30 Moscow time.

In general, the technical picture is favorable for buyers. They still have an advantage over the sellers, so they can continue to raise the price to $125 at any time. Their activity is also constrained by the strengthening of the dollar and news from China. Shanghai authorities announced their intention to close seven districts of the city on Saturday for mass testing for COVID-19. If the tests satisfy the authorities, then next week the buyers will have the strength to continue the rally.

On Friday, June 10, at auction in Asia, Brent oil costs $122 per barrel. The price retreated slightly from the high, but is still trading at the maximum levels. High volatility in the market is expected after the release of data on consumer prices in the US for May. The return of the price to the level of $124 will indicate the willingness of buyers to break through $125. A price drop below $120.50 will cast doubt on further growth.