General analysis Brent for 18.03.2022

Current Dynamics

Oil companies in the U.S. are in no hurry to invest their excess profit in the development of new fields. Boris Johnson could not persuade the leaders of Saudi Arabia and the UAE to increase oil production. Brent is back on the rise after a week-long decline and trading above $100.
The White House is making attempts to lower domestic gasoline prices, but oil and gas companies see no need to invest in boosting energy production. The Senate has summoned heads of major national oil companies to resolve the current situation with fuel in the country, but it has not brought any particular results, from which we can conclude that an explosive growth in oil production in the U.S. should not be expected.
Amid rising oil prices, Brazil has announced that it will increase its oil production by 7.3% in 2022, compared with 2021. The Brazilian authorities also plan to increase oil production by 70% to 5.3 billion barrels over the next 10 years.
After the failed telephone talks of the US President with the leaders of Saudi Arabia and the UAE, the British Prime Minister Boris Johnson came to the Middle East. However, after a meeting with Crown Prince Mohammed bin Salman, which lasted about two hours, the British Prime Minister was able to explain that the decision on oil production rests with the Saudis.
At the same time, Indian oil companies begin to buy Urals oil. This kind of oil is produced in Russia. Late last week, the Indian Oil Corporation (IOC) bought 3 million barrels of oil from Russia via a European trader. It is worth noting that Indian Foreign Ministry officials announced a possible deal with Russia to buy 15 million barrels of oil. The outflow of Russian oil to India may provoke its deficit in Europe, which may lead to another rise in hydrocarbon prices.

Support and resistance levels.

After a week-long decline in Brent, which was caused by the failed negotiations between London and Saudis to increase the production, the oil quotes returned to growth. The price broke through the key Fibonacci level of 76.4 and set the price above $104.15 per barrel. The RSI oscillator is above the 50 level at the top.

• Support levels: 104.15, 101.30, 95.85
• Resistance levels: 131.00, 122.70, 117.70, 113.50, 109.30

Trading scenarios

• Long positions can be opened from the current level with a target of 119.30 and a stop loss of 101.30. Implementation period: 1-3 days
• Short positions can be opened below the level of 101.30 with a target of 95.85 and stop loss of 104.15. Implementation period: 1-3 days