Oil: the market is ready for a rally

On Monday, May 23, trading in Brent oil ended with an increase of 0.51% to $113.43. We can say that the day ended almost unchanged. Participants are waiting for new news from the EU, as politicians cannot resolve the issue of importing Russian energy resources.

A positive factor for the oil market is the weakening of anti-coronavirus restrictions in Shanghai. However, traders are keeping a close eye on the latest reports of a rise in new COVID infections in Beijing.

On Tuesday, May 24, at auction in Asia, Brent oil costs $112.90. From a technical point of view, the market is ready for a rally to $120 per barrel. It is enough to pass the $115.50 level. In the evening, the American Petroleum Institute will present a report on oil reserves.