Oil: buyers lost one important level

On Friday, June 17, according to the results of the day, Brent crude oil fell by 4.91%, to $113.24. The fall started from the level of 121.21 and accelerated in the American session.

Oil prices began to fall after statements by Fed Chairman Jerome Powell about his firm intention to reduce inflation in the United States. Powell and Yellen are trying to attribute high domestic inflation to global inflation and a special operation in the Donbass. To reduce inflation, you need to fight energy prices. Raising rates can send the economy into recession.

Energy Secretary Jennifer Granholm has asked all oil and gas producers, including OPEC, to increase production to bring down record high fuel prices in the US and EU. First attempt at a solution.

The technical factor also worked in the fall of prices. The price broke through the level of 118.50, below which buyers began to take profits on long positions. Only when the price falls below $110 can we say that reaching the $135 level will be delayed for at least a month.

U.S. oil rig count rose by 4 to 584 last week, according to Baker Hughes. The total number of oil and gas rigs increased by 7 units, up to 740 units.

On Monday, June 20, a barrel of Brent costs $112.70 at auction in Asia. The dollar index is declining. Monday could turn out to be a corrective day as markets are closed in the US for Emancipation Day (Emancipation Day). On June 17, 2021, U.S. President Joe Biden signed legislation passed by Congress to make the day a federal holiday. The trading price range for Monday is $110.50 – $116.50.