The price of oil has been rising in the last two days.
The main sort BRENT is currently trading at around $ 30 – up more than 22% from its lowest value in the last 17 years – $ 24.61 registered on March 18 this year.
The reaction to the market comes amid mixed fundamental sentiment – an expectation of diminished demand due to the coronavirus crisis and a misunderstanding between Russia and Saudi on supply and pricing policies. Yesterday, the US Department of Energy said it would purchase 30 million barrels of oil for the Strategic Oil Reserve as an initial step in implementing President Donald Trump’s directive to replenish the reserve and to assist local crude oil producers.
The US Oil Reserve, located on the shores of Texas and Louisiana, has a capacity for an additional 77 million barrels. The purchase of the first 30 million barrels is aimed at small and medium-sized producers, the Energy Department said.
Technical analysis showing that crude oil is still in a downtrend on the daily chart. Potential supply levels are between $35 – $42 for a barrel.
Junior Trader Radi Djuma