Oil: buyers went on the offensive

On Monday, June 27, a barrel of Brent rose 2.02% to $115.03. The price re-fixed above $111 per barrel. Now buyers can again take the course to the level of $120.

The increase in oil prices is taking place against the backdrop of increased geopolitical tensions. The G7 countries are preparing new restrictions against Russian oil. In particular, a variant is being discussed under which European insurers will insure tankers with Russian oil only if it is sold at a price below a certain level. Russia, in the event of such a decision, may stop or limit the export of oil and oil products to the G7 countries, which will increase the shortage of oil on the world market.

Crude stocks in the Strategic Petroleum Reserve fell by 6.9 million barrels to 497.9 million barrels in the week to June 24, the lowest level since April 1986, according to the US Department of Energy.

At the end of April, the US announced the sale of a huge batch of 180 million barrels, which is planned to be sold within 6 months. Reserve stocks failed to reduce prices, only smoothed out price fluctuations and slowed down growth.

On Tuesday, June 28, Brent oil rose 1.15% to $116.67 in Asian trading. Against the background of geopolitical tensions, buyers will try to return to the level of $ 119 per barrel - it was broken on June 16. Since there was a false breakout of the trend line at $110, now the new support is at $108.50. The price may turn down if the sentiment on risky assets changes and the dollar index continues to grow with the yield on 10-year US government bonds.