Oil market review of April 16, 2021
On Friday, Brent continues to develop its upward movement, and since the start of trading has risen by 0.9%, rising to $ 67.32.
The fundamental background supports the “black gold” quotes. On Wednesday, the Energy Security Administration released a report on oil reserves, according to which volumes fell immediately by 5.9 million barrels.
On the same day, the International Energy Agency raised its forecast for this year for oil demand to 5.7 million barrels per day (+230 thousand barrels per day).
OPEC + also raised expectations, but here the forecast looks more modest – (+100) thousand barrels per day. In addition, the Cartel raised its forecast for global economic growth from 5.1% to 5.4%.
A rapidly recovering China is also on the side of oil buyers. According to the report, China’s first-quarter GDP grew by 18.3% year-on-year.
Well, of course, the growth of “black gold” is facilitated by the weakening of the dollar, caused by a decrease in Treasury yields.
Taking into account the fact that the FRS firmly refuses to revise the course of monetary policy this year, we believe that the dollar will continue to decline, which will become an additional factor supporting Brent.
We write a new pending order to buy Brent in the trader’s diary
Buy-limit 66.70 take-profit 70.00 stop-loss 66.00