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FX.co ★ 10.06.2021: Oil strives to find balance - (Brent, WTI, USD/RUB, EUR/RUB).

10.06.2021: Oil strives to find balance - (Brent, WTI, USD/RUB, EUR/RUB).

As you know, oil prices have been climbing for the past few weeks on hopes that fuel demand will pick up in the near term. However, during the recent sessions, crude prices went through a small but rapid decline. This happened after the data showed an increase in petroleum stockpiles. At the same time, the report on crude oil inventories in the US pushed the prices higher. Once again, crude stockpiles turned out to be much less than expected. The situation is unlikely to change in the coming days which means another upward cycle for oil prices. Brent oil futures entered a phase of correction after a string of upward movements. Right after the correction, the price resumed its uptrend supported by bullish inventories data that was released yesterday. Currently, the resistance level for Brent is found at 73 dollars per barrel. If the price manages to hold above this level for at least four hours, then new upside momentum is very possible. Otherwise, the quote will stay in the current trading range. Meanwhile, WTI crude is following the same ascending cycle with a period of correction. The North American benchmark has found resistance at 70 dollars 60 cents per barrel. If lower crude stockpiles convince market players, then the quote may break through this level and settle above it. On the other hand, the price may stay trading in the channel between 69.9 and 70.5 dollars a barrel. As for the dollar/ruble pair, it went through a slight pullback yesterday. The level of 72 served as a pivot point. Therefore, the bearish sentiment is prevailing among traders. If the price holds below the level of 72 on the 4-hour time frame, this will lead to an increase of short positions on the pair. Then, the pair is likely to head for the area of 71.00 – 70.00 rubles per dollar. Notably, the ruble has already been largely overbought. Yesterday, the ruble slowed down its pace of decline against the euro. As a result, the pair came to a short standstill. To resume the uptrend, the euro/ruble pair should hold below the mark of 87.65. And again we would like to remind you about overbought conditions of the ruble. It seems that the Russian currency has gone too far, so experts predict its upcoming fall in the next few weeks. Indeed, the ruble has been rising for almost two months in a row. At the moment, its has stopped at the highest levels of this year despite the lack of any serious drivers. Yet, the ruble may well continue to strengthen further. The data on inflation rate in the US may support the Russian currency. Another bullish factor for the ruble will be the growth of oil prices amid declining crude inventories. That is all for now. Stay with us!

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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