The price of American benchmark Light Sweet crude oil increased significantly after the release of unemployment data in the U.S., which remained at 6.3%, despite the fact that investors had expected the growth to 6.4%. In addition, the market reacted positively to the news on increase in the trade surplus of China by 7% in May, compared to the same period of the last year. It is worth recalling that one of the main risks for rising oil prices is slowing of the world's second oil consumer.
Despite this, the volume of oil production in the U.S. remains at record levels and continues to grow. Tomorrow will be held a meeting of OPEC at which will decide on compensating the fall in oil supplies from Libya.
From a technical standpoint, the price of oil reached a strong resistance level near 104.00 dollars per barrel. We expect the resumption of the downward price movement and recommend opening short positions with a stop above 104.10 and the target near 102.00.
Wish you the profits!
FXFINPRO Capital Analytical department.