The US Senate approved an anti-cartel bill allowing lawsuits against OPEC

On Friday, May 13, according to the results of trading, Brent crude oil rose 3.26% to $111.47. The oil market continues to be influenced by expectations on the proposal of the European Commission to impose an embargo on the purchase of oil and refined products from Russia.

The oil market received additional support from the correction of the dollar and the growth of US stock indices. The dollar lost ground as Fed chief Jerome Powell reiterated that he expects a 50bp rate hike. at the next two meetings, which reduced fears of a higher rate hike (by 75 basis points).

According to the latest data from Baker Hughes, over the past week the number of oil rigs increased by 6 units, to 563 units, the number of gas rigs increased by 3 units, to 149 units.

On Monday, May 16, Brent oil fell 1.26% to $109.10 at auction in Asia. The focus of market participants remains the EU with a decision on the embargo, as well as the speech of the head of the US Federal Reserve, J. Powell. His meeting is scheduled for Tuesday.

On the daily chart, the price of Brent remains trading in a limited range of $101-$114. Where the price will go, in that direction it will move during the week. Buyers are still set to rise to $120.

The US Senate approved an anti-cartel bill allowing lawsuits against OPEC. Considering that the States always act rudely and arrogantly, their actions may cause the price of Brent to exceed $150 per barrel.

On Monday, May 16, according to the results of the day, Brent crude oil rose by 2.25% to $113.98. A possible embargo of Russian oil by the EU countries is a key factor for the oil market in the coming days. The growth of quotations is constrained by the fact that Hungary is blocking the proposal of the European Commission. Budapest is ready to give up Russian oil in exchange for compensation for the costs of restructuring the country's energy sector. The amount of compensation is called in the amount of €15 billion to 18 billion.

Another negative factor for the oil market is the news from China. Refineries cut production volumes due to lower demand amid widespread COVID-19-related restrictions.

On the daily chart, the price of Brent remains trading in a limited range of $101-$114. Buyers are trying to break through the upper limit of the range. After it, they will open the road to $120 on technical factors. Breakout trigger needed.