General analysis Brent for 16.09.2021
Current Dynamics
The oil market continues to strengthen after the publication of the U.S. Department of Energy's report on commercial oil reserves. The weekly U.S. crude stockpile decline totaled 6.42 million barrels, almost twice the forecast. Gasoline inventories were down 1.9 million barrels and distillate inventories were down 1.7 million barrels. The decrease of hydrocarbons stocks has been observed for six weeks in a row, the demand on the market exceeds the supply, so Brent has not yet exhausted its upside potential.
At the same time, production volumes in the Gulf of Mexico are still not restored. After Hurricane Ida, regional oil producers are unable to restore about 30% of production capacity. Hurricane Nicholas also wreaked havoc on the Texas coast but did not damage the oil infrastructure. At the same time, it should be taken into account that a new hurricane is currently forming in the Gulf of Mexico.
On Friday at 19:00 (GMT+2), Baker Hughes will release data on the number of active U.S. drilling rigs.
On the 4-hour chart, the instrument is testing the strong psychological level of 75.00. The Bollinger Bands indicator is directed upward and the price range remains wide, which indicates that the uptrend continues. The MACD histogram is holding a strong buy signal. Stochastic has left the overbought area, forming a sell signal.