Benchmark Brent Crude Oil prices are correcting, trading just above 108 dollars per barrel amid production cuts by Russia, one of the largest exporters of "black gold". It is reported that production decreased by 9% compared to March values against the backdrop of the desire of Western countries to abandon the supply of resources after the start of a special military operation by Russian troops in Ukraine.
According to statistics, the most serious reduction was made by PJSC Rosneft, reducing production by 20%, and two other major market players, PJSC Gazpromneft and PJSC Surgutneftegaz, adjusted the figure by 4% each. Against this backdrop, OPEC+, which is scheduled to meet on May 5, is considering to continue increasing production levels by 432K barrels per day instead of the traditional monthly increase by 400K to slightly compensate for the existing losses of Russian oil.
Meanwhile, the British-Dutch oil and gas corporation Royal Dutch Shell refused to purchase refined products with any content of Russian raw materials, including fuel mixtures, while the French Total Energies plans to stop the lubricants business in Russia by the end of the month.
As for local trends, the day before, the Energy Information Administration (EIA) announced an expected increase in inventories held by US firms by 0.692M barrels after a serious reduction last week by 8.020M barrels, which had a positive impact on asset quotes.
On the daily chart, the price continues to trade as part of the formation of the global Triangle pattern. Technical indicators are in a state of uncertainty and do not give a clear signal to either side: the fast Alligator indicator EMAs crossed each other, and the histogram of the AO oscillator is forming ascending bars, being at the transition level.
Support levels: 101, 90.2 | Resistance levels: 111.85, 129.38
