Meanwhile, US energy giant ExxonMobil Corp. has offered Iraq’s Ministry of Oil to acquire the controlling stake of Russia’s PJSC Lukoil, which represents the company’s largest overseas asset, in the West Qurna-2 field. This field accounts for around 0.5% of global crude supplies and 9.0% of all oil production in Iraq, the second-largest OPEC producer after Saudi Arabia. According to Reuters, the Ministry has invited several US energy companies to begin talks on acquiring the project, planning to transfer its operation through a competitive bidding process.
According to the American Petroleum Institute (API), commercial fuel inventories moved from –1.900 million barrels to –2.480 million barrels, while data from the US Energy Information Administration (EIA) showed that after a 2.774 million barrel increase last week (for which markets expected a –1.900 million barrel pullback), stocks instead rose by another 0.574 million barrels, extending the positive trend for a third consecutive week. At the same time, figures from the Chicago Mercantile Exchange (CME Group) indicate a slight increase in demand for oil contracts: the number of futures positions has climbed to 661.19 thousand from the 28 November low of 357.0 thousand, while options positions stand at around 100.0 thousand.
Support and resistance levels
On the daily chart, the instrument is correcting down from the resistance line of the descending channel, which has dynamic boundaries at 66.00–57.50.
Technical indicators are weakening their sell signal: the fast EMAs of the Alligator indicator are approaching the signal line from below, while the Awesome Oscillator (AO) histogram is forming corrective bars in negative territory.
Resistance levels: 64.30, 69.00.
Support levels: 61.50, 57.50.
Trading scenarios and Brent Crude Oil forecast
Short positions can be opened after a decline and consolidation of the price below 61.50 with a target at 57.50. Stop-loss — 63.00. Implementation period: 7 days or more.
Long positions can be opened after a rise and consolidation of the price above 64.50 with a target at 69.00. Stop-loss — 62.00.
Scenario
| Timeframe | Weekly |
| Recommendations | SELL STOP |
| Entry point | 61.50 |
| Take Profit | 57.50 |
| Stop Loss | 63.00 |
| Key levels | 57.50, 61.50, 64.30, 69.00 |
Alternative scenario
| Recommendations | BUY STOP |
| Entry point | 64.50 |
| Take Profit | 69.00 |
| Stop Loss | 62.00 |
| Key levels | 57.50, 61.50, 64.30, 69.00 |