Oil: buyers stay on the defensive

On Monday, November 22, oil trading ended with growth. A barrel of Brent rose 1.41% to $ 79.47. Oil trading was relatively calm. The price traded in the $ 78.00-80.00 price range.

Speculators ignored the dollar rally after reports that US President Joe Biden nominated current Federal Reserve System (FRS) head Jerome Powell for a second term in office.

We also failed to bounce off the level of $ 78 (intermediate support), as J. Biden is preparing to announce oil supplies from the strategic reserve. China, India, South Korea and Japan may join the United States. These countries are major importers of energy resources.

The United States took such a step to ensure a reduction in the price of oil products and help further economic recovery. OPEC + countries may adjust their production policy if the US and other countries make supplies from strategic reserves.

On Tuesday, November 23, at trading in Asia, oil is trading in a slight minus. A barrel of Brent is worth 79.27 (-0.24%). The price is above the support of $ 77.50. The rally in quotes continues to hold back a rally in the dollar and concerns about the impact of rising COVID-19 infections in Europe. Now it is very important at what level the month will close. If it is around 77.50, sellers will become very active, as a bearish signal will form on them the day with a target around $ 70 per barrel. If the price closes around $ 82, then buyers will be on top. In this case, they will start preparing for the 100 / bbl test.