Brent price renews weekly high

On Wednesday, January 12, oil trading ended with growth. Brent rose in price by 1.33% to $ 84.71 per barrel. The active phase of growth in oil quotes was observed in the American session against the background of the weakening of the US dollar. The dollar came under pressure after the publication of the inflation report in the United States for March.

The published US consumer price inflation figures (CPI) exceeded forecasts, reflecting the highest price increases in the country since 1982. The report did not provide support to the dollar, as market participants included in prices the first rate hike in March. The decline in Treasury yields negatively affected the dollar as a defensive asset.

Oil reserves in the United States last week decreased by 4.55 million barrels - to 413.3 million barrels (the forecast was -1.85 million barrels). Gasoline stocks increased by 7.96 million barrels, to 240.75 million barrels (the forecast was + 2.75 million barrels), distillate stocks - by 2.54 million barrels, to 129.38 million barrels (the forecast was +1.7 million barrels). Oil production decreased by 100 thousand barrels, to 1.7 million barrels per day.

On Thursday, January 13, at trading in Asia, Brent crude oil costs $ 84.45 per barrel. The price increased to 85.17. Buyers have gotten to an important resistance. Now they need to hold altitude for the rest of the week. If the correction does not follow, then next week we are preparing to continue the rally to $ 86.65.

Price will correct until the end of the week, and try to establish support around $83.50 level for bulls to gain ground to push prices higher next week. So This can be traded as an range between 83.50-84.80.