The Brent Oil has posted humble gains today and is still struggling to start a broader increase, remains to see what will happen because the rate continues to move sideways. The price is trapped inside of a minor triangle, we had two false breakouts in the last days, but personally I still believe that will increase further in the coming period. I want to remind you that perspective remains bullish on the short to the medium term, so the rate should increase further, what he needs is only a bullish spark.
The Oil could increase as the Loonie has increased sharply versus the greenback in the yesterday’s trading session and looks determined to increase further on the short term. A USD’s drop will make the oil much cheaper for the international customers from outside the United States. The Oil could increase also because the Crude Oil Inventories have increased less than expected in the previous week, were reported at 0.6 million barrels, much lower compared to the 3.4M estimate. The Crude Levels remain in the positive territory, but the rate could still increase.
The rate has changed little today and continues to trade inside the minor triangle’s body, you can see that has tried to break from this chart pattern, but has failed, signalling that most likely will continue to move in range in the coming days until we’ll have a valid breakout. Price is narrowing, so most likely we’ll have a significant movement very soon, remains to see the direction, I’ve said higher that the perspective remains bullish on the short to the medium term, so is somehow expected to increase further.
We could have some volatility on the oil today as the Statistics Canada is to release high impact data, the CPI and the Core CPI will be released, remains to see how the Loonie will react after the data will be sent to the public, a disappointment could force the Brent to decrease again on the short term. The US is to release high impact data as well, so will be better to keep an eye on the economic calendar to see what will move the price.