Buying Brent to 72.50

Yesterday, the U.S. imposed new sanctions on more than 30 brokers, tanker operators, and shipping companies for their involvement in the transportation of Iranian oil. President Donald Trump has stated his goal of reducing Iran’s crude oil exports to zero.

The new U.S. sanctions targeting Iranian oil producers have heightened concerns about potential supply shortages.

Iran is the third-largest producer in the Organization of the Petroleum Exporting Countries (OPEC), producing 3.2 million barrels per day in January, according to OPEC’s latest data.

In addition, Trump stated on Monday that tariffs on imports from Canada and Mexico, which are set to take effect on March 4, will be imposed “on time and on schedule,” despite the efforts of trading partners to negotiate.

Oil prices are also buoyed by the recent completion of parliamentary elections in Germany, which has brought clarity and confidence to the business community, indicating a positive outlook for manufacturing activity and stimulating demand for crude oil.

Currently, strong demand for fuel in the West is supporting oil markets. This heightened demand is being driven by a significant cold snap affecting the US Gulf Coast and northwest Europe.

Tomorrow, new weekly data on US crude oil inventories will be released. If the data show a reduction of more than half from the previous level, it could provide strong support for oil prices, including Brent.

From a technical point of view, Brent prices are currently supported in the range of 73.70-74.00. The resistance level at 75.20 is viewed as a likely target for upward movement.

The overall recommendation is to buy Brent oil, provided that tomorrow’s report on US crude oil inventories will show at least a two-fold reduction.

Profits should be taken at the level of 72.50. A Stop-loss could be set at the level of 74.10.

The volume of the opened position should be set in such a way that the value of a possible loss, fixed with the help of a protective Stop loss order, is no more than 1% of your deposit funds.