Oil: buyers hold positions above $120

On Monday, June 13, oil trading ended with a decline. A barrel of Brent rose 0.5% to $122.24. Buyers managed to push the price up from $118.71, maintaining the bullish trend.

Active sales of oil futures began on Friday (June 10), after the release of the US inflation report for May. Investors were concerned about high inflation and growing signs of the US economy moving into recession. To combat inflation, the Fed will have to resort to aggressive measures, which investors fear. And the dollar rally is holding back buyers in oil. A strong dollar means that goods denominated in US dollars are becoming expensive for international buyers.

On Tuesday, June 14, at auction in Asia, a barrel of Brent costs $122.34. The bullish trend remains in place. I expect consolidation in the range of $121-124.

Market participants are focusing on the US Federal Reserve meeting and J. Powell's press conference. Events are scheduled for Wednesday. We also follow the news from China. Beijing and Shanghai reintroduced restrictions last week as Covid-19 cases rose again. A new focus of COVID-19 has been identified in one of the bars in the prestigious part of the Chaoyang district.