FX.co ★ 28.07.2021: Oil prices rise following API data - (Brent, WTI, USD/RUB, EUR/RUB)

Yesterday, the US unveiled its weekly data on crude inventories. The figure again turned out to be much lower than forecasts.

However, despite a drop in US crude oil inventories, oil prices are still not growing. Of course, analysts have an explanation. Watch our video review and learn more about the commodity market.

Brent crude slightly rose following a decrease in inventory levels of US crude oil. Yet, the price faced a strong resistance level of $75,00. It has been fluctuating around the resistance level for about 30 hours without making attempts to break above this level. To resume the bullish momentum, the price needs to consolidate above the $75,10 level. Otherwise, it may rebound from the resistance level. Additionally, Brent crude was slightly overvalued. Now, it is adjusting to its actual market values. This is why Brent Crude is highly unlikely to resume an upward movement.

Meanwhile, WTI crude entered a sideways channel of $70.60 - $72.40. Moreover, its quote has been flat for the third day. Analysts advise using the breakout trading strategy. This is the most optimal trading strategy as various fundamental factors are weighing on oil prices. On the one hand, there is a decrease in crude inventories, which is bullish for the oil market. On the other hand, traders were disappointed with a negative forecast for the epidemiological situation. If it worsens, it may adversely affect oil prices.

The dollar/ruble pair has been trading near the support level of 73.50 for several days in a row. Apparently, many traders expect the pair to go down. Currently, it is holding near the support level which leads to a reduction in the volume of short positions. This is why it is not recommended to open short trades beforehand. Now, investors are waiting for the quote to consolidate below 73.50 as it may still break above the support level.

The euro/ruble pair has already broken above the support level of 86.50. Shortly after, its quote returned to the level of 87.40. The pair is likely to edge higher if it consolidates above the current level. Otherwise, it may slide to the support level of 86.50.

So, the ruble is growing as traders are expecting an increase in oil prices. Yet, it is not that simple. They will soon see that oil has stopped rising following reports on a decline in oil inventories. If so, the ruble may drop.