The price of American benchmark Light Sweet crude oil is consolidating around the psychological level of $ 100 per barrel. Further price movement will depend on the comments of new head of the U.S. Federal Reserve on monetary policy of the country (15:00 GMT). Reducing tensions concerning Iran's nuclear program continues to put pressure on oil quotations, but has already been partially priced in.
Demand for petroleum products in the U.S. is supported by weather conditions in North America, but with the warming we expect an increase of oil inventories and growing disbalance between supply and demand on the market. The uncertain factor is the ECB policy on struggle against inflation. In addition, investors are closely watching the data from China (the second largest consumer of oil in the world).
Today, the course of trading will be affected by data on oil inventories in the U.S. by API (19:30 GMT).
The most probable scenario at the moment is the decline of oil prices. In such case, the target levels will be 98.50 and 96.50.
Wish you the profits!
FXFINPRO Capital Analytical department.