Oil prices are under pressure as market participants expressed concern that the increase in the area of $ 50 a barrel was poorly justified fundamentally. Certain negative added data from Iraq, which again began to increase production in April. Net long positions on NYMEX at record high levels, which is also an indicator of socio-psychological overdue downward correction.
Today and tomorrow will be published important reports on stocks. First, the American Petroleum Institute (May 3, 19.30 GMT), and then from the Energy Information Agency (4 May, 15.30 GMT). If they will record growth, this may be an additional reason for the sales from the current relatively high price levels.
Brent deviation from the 50-day moving average (SMA50) April 28 reached 18%. Historically in this area contracts often begin to be adjusted in the direction of the average, the value of which currently stands at 41.08. On Tuesday morning, May 3 price check on the strength of the 200-hour moving average (45.81), but the activity of buyers near this mark low. It forms a support in the area of 45.63. If she can not stand, it could signal the beginning of a protracted correction.