Brent moves to sideway consolidation
Oil prices showed positive dynamics on the last trading. The spread between the current contracts for Brent and WTI is now about $ 2.4 in favor of Brent.
On Tuesday, oil market gained a bit, however the overall technical picture almost did not change. The market expects the development of lateral consolidation. Such a trend can be continued in the coming days.
The lower Brent border of the new sideway channel is located in the region of $ 46 46.6. These levels are a support zone that separates from the shift of the reduction targets towards $ 43.5. Well, from the top as a resistance area is located around $ 49. It is suggested simply to wait for the breakdown of one of the above boundaries.
Last night, statistics were published from the American Petroleum Institute (API). For a week, oil inventories in the US increased by 1.6 million barrels (to 497.2 million). According to Reuters surveys, analysts on average expected a fall of 3.2 million barrels. Gasoline reserves at the same time decreased by 5.4 million barrels (forecast 0.67 million), distillate stocks fell by 2.9 million barrels (forecast +1.2 million). Oil imports for the week increased by 504 thousand b / d, to the level of 8.09 million b / d.
Today markets are waiting for the publication of official data on US reserves from the Office of the Department of Energy (EIA).
Ecuador refused to cut production. The Minister of Oil Industry of the country Carlos Perez told reporters that Ecuador is experiencing serious economic difficulties due to high debt and budget deficit. In this regard, the obligation to limit oil production will not be fulfilled.
The news went unnoticed, as Ecuador's share is very small. The country pledged to reduce production by only 22,000 barrels per day, from 548 to 522,000 per day. According to the OPEC secretariat, these conditions were fulfilled at best by 60 70%. Since July, Ecuador has resumed production growth (current level of 545 thousand barrels per day).