Oil could fall to$ 70 in the first week of may
The price of Brent crude oil yesterday unsuccessfully tested major resistance at $75 per barrel, then fell back to around $74, formed the first technical signs of a reversal. It is not about the big price drop, however, if yesterday’s decline will get rapid development, in the first week of may, Brent crude falls to $70 per barrel.
That is why the next few trading days are very important for the oil market. This week we’ve got a bad intra-industry statistics from the United States, completely confused the situation with the extension of the deal to limit production of OPEC+, and adding at least a little negative, the precarious balance of the price will move in the breakout direction $74 per barrel and falling further.
Tonight,April 26, the Agency Baker Neediest report on the number of drilling rigs in the United States. Usually, these data most likely could not exert a serious influence on oil prices, but given the situation described above, they can be the most minimal touch that pushed the market balance down. So probably a large part of Friday quotes of Brent will remain at the bottom of the range at $74-75 a barrel, and after the release of the us statistics can try to slip below $74.
Chief analyst. OOO “CAFT” (Center Analytics and financial technology)