Oil: buyers are ready to attack

On Thursday, May 12, oil trading closed with a slight increase. The price of Brent crude rose 0.43% to $107.95 per barrel. The market recovered after the release of the US Department of Energy, which recorded an increase in US oil inventories last week by 8.49 million barrels instead of the expected growth of 1.45 million barrels.

Market participants continue to follow the ongoing Russian-Ukrainian conflict and EU discussions on an embargo on oil from Russia. Hungary, which refuses to support the proposals of the European Commission, prevents the approval of sanctions. Budapest motivates its position with the desire to protect its own economy.

A negative factor for the oil market is the fear of a recession, which will reduce the demand for energy resources due to the deteriorating economic situation, as well as lockdowns in China.

On Friday, May 13, a barrel of Brent costs $109 at auction in Asia. The boundaries of the symmetrical triangle narrowed to $101.60 - $110.60. When the price leaves the price range, we should expect a strong movement within 2-3 days. Buyers are set to return the rate to $120 per barrel. It is not known only what news will be the trigger for the breakout of the $110.60 level.