Current trend

Prices for benchmark Brent Crude Oil are corrected slightly above 82.00.

The asset's quotes continue their upward correction, which is largely a reaction of investors to the increasingly complicated situation in the Red Sea, where Houthi attacks on commercial and military vessels continue. In the past three weeks, most attacks have taken place in the Gulf of Aden using new weapons such as unmanned boats. Thus, 44 attacks on various vessels were recorded, which indicates that the plan of the United States and other NATO countries to restore the stability of shipping did not work and, most likely, more and more suppliers will abandon this route, increasing the time it takes to transport goods.

On Tuesday, February 27, the American Petroleum Institute (API) reported an increase in oil inventories of 8.428 million barrels after an increase of 7.168 million barrels earlier, and on Wednesday the Energy Information Administration (EIA) of the US Department of Energy reported an increase of 4.199 million barrels after 3.514 million barrels a week earlier. In addition, excess oil inventories held in Cushing storage facilities amounted to 1.458 million barrels, after 0.741 million barrels recorded in the previous week.

Support and resistance

On the daily chart, the price is trading in a global corrective trend, heading towards the resistance line of a local ascending corridor with boundaries of 85.60–79.50.

Technical indicators support a local correction while maintaining a global buy signal: fast EMAs on the Alligator indicator remain above the signal line, and the AO histogram, being in the buy zone, forms ascending bars again.

Support levels: 80.70, 77.30

Resistance levels: 82.70, 85.70.

Trading tips

If the local growth of the asset continues, and the price consolidates above the local resistance level of 82.70, buy positions with a target of 85.70 remain relevant. Stop-loss — 81.00. Implementation time: 7 days and more.

If the asset reverses and continues global decline and the price consolidates below the support level at 80.70, short positions can be opened with the target at 77.30. Stop-loss — 82.00.