Current trend

The price of North American WTI Crude Oil is correcting within a sideways trend at 69.20.

Investors are monitoring the volume of oil supplies by Russia, which increases its exportsin the face of sanctions and price restrictions. Thus, Bloomberg reported that the share of Russian oil supplies to India increased from 2.0% last year to 46.0% due to a discount policy: the average oil price purchased by Indian refineries in April was 68.0 dollars per barrel, which is lower than the average price of Iraqi oil of 78.0 dollars per barrel and Saudi oil of 87.0 dollars per barrel. These transactions are carried out predominantly in rupees and rubles, and not in dollars, which further affects the pricing processes.

US energy inventories continued to decline sharply this week, with the American Petroleum Institute (API) falling by 2.408M barrels, beating forecasts of –1.476M, and a report by the Energy Information Administration of the US Department of Energy (EIA) informed of a decrease in the value for the week by 9.603M barrels, with an expected decrease of 1.757M. Thus, the country continues to actively sell oil to compensate for the reduction in OPEC production but so far, it doesn’t significantly affect the quotes.

Support and resistance

On the daily chart, the trading instrument is moving within the global channel with dynamic boundaries of 78.20–60.80, falling toward the support line.

Technical indicators hold a stable sell signal: fast EMAs on the Alligator indicator keep the oscillation range downwards, and the AO histogram forms downward bars, dropping in the sell zone.

Resistance levels: 72.40, 77.30.

Support levels: 67.40, 64.00.

Trading tips

Short positions may be opened after the price drops and consolidates below 67.40 with the target at 64.00. Stop loss — 69.00. Implementation period: 7 days or more.

Long positions may be opened after a reversal, growth, and price consolidation above 72.40 with the target at 77.30. Stop loss — 71.00.