Oil: buyers are preparing to storm the level of $115

On Tuesday, May 24, trading ended with an increase in oil prices. A barrel of Brent rose 0.37% to $113.85. There were no sharp price fluctuations in the market. The growth of quotations was restrained as the head of the EC opposed an immediate ban on Russian oil.

European politicians quickly changed their shoes when they realized that they could not replace Russian energy resources. Ursula von der Leyen said that oil should not be abandoned, since the embargo will cause prices to rise and Russia will earn even more on oil by reselling it at a higher price in another market. If we translate her words into simple language, we get the following: “The EU did not impose sanctions for Russia to prosper and Europe to suffer. We are very dependent on Russia and we need energy resources like air.”

The US Department of Energy announced its decision to sell up to 40.1 million barrels of crude oil to the market as part of President Biden's March pledge to phase out one million barrels of oil per day from strategic reserves over six months.

Data from the American Petroleum Institute (API) showed an increase in oil reserves in the country by 0.567 million barrels (-0.7 million was expected). Inventories of gasoline decreased by 4.233 million barrels (expected -0.6 million), distillate stocks - by 0.949 million barrels (expected +0.9 million). In the evening, the US Department of Energy will publish its report on oil reserves. The market expects a reduction of 0.8 million barrels.

On Wednesday, May 25, at auction in Asia, Brent oil costs $114.69 per barrel, Urals - $86.13. Oil prices are trading near the maximum levels. Buyers are still set for continued growth to $120.