The price of oil will remain trading in a sideways trend

On Friday, May 20, according to the results of the day, Brent oil rose in price by 1.21%, to $112.86. There was no negative news for the oil market. Trades were relatively calm.

The number of active oil rigs in the US has risen for the ninth week in a row. According to the latest data from Baker Hughes, the number of oil drilling rigs has increased by 13 units to 576 units. The total number of oil and gas rigs increased by 14 units to 728 units.

Shanghai is starting to reopen some public transport but is still on high alert for COVID-19. The authorities expect that normal life in the metropolis, according to the approved plan, should be restored before the end of June.

On Monday, May 23, at auction in Asia, Brent crude is trading at $113 per oil. The technical picture on the daily timeframe remains favorable for buyers. The dollar index is trading down. The correction is intensifying. I believe that if the dollar index falls below 102.30 points, the demand for risky assets will rise sharply. Futures for stock indices are traded in positive territory. Apparently, market participants took into account the increase in rates by the US Federal Reserve in June and July. Against this background, we should expect continued growth in oil prices.