External factors put pressure on the oil market
On Tuesday, November 16, oil trading closed slightly higher. A barrel of Brent crude rose 0.30% to $ 82.32. The price remains in a sideways trend due to the rally in the dollar index.
Strong macro statistics and hawkish statements from the US Federal Reserve officials are pushing up the yield on 10-year government bonds and supporting the dollar on all fronts. Also, an increase in oil prices restrains the growth in the number of coronavirus diseases in Europe.
The latest data from the American Petroleum Institute (API) showed that over the past week, oil reserves increased by 0.655 million barrels (forecast was +1.4 million). Gasoline inventories decreased by 2.792 million barrels (forecast was +0.6 million). Distillate stocks rose by 0.107 million barrels (the forecast was -1.2 million). Best to wait until Crude Oil Inventories are released to decide the direction of the market. Release at 17:30 Kiev Time.
On Wednesday, November 17, major currencies traded in the red in Asian trading. A barrel of Brent costs $ 81.73 (-0.74%). The dollar index has renewed its maximum at 96.27. With such an external background, there is a high probability that the price will drop to $ 81.00. For the growth to resume with renewed vigor, buyers need to close the day above $ 83.25 today. The support level is $ 80. If sellers pass it, then the price will move to the $ 77.50 level.
