«Bulls» are returning to the oil markets

On Tuesday, oil prices showed steady growth, increasing by 1.3% and reaching the level of $88.50 per barrel. Today's trading also started with an increase to $88.80 per barrel. By evening, the price dropped slightly to $88.20 per barrel. 

Prices were supported by data from the American Petroleum Institute (API), according to which oil reserves in the United States decreased by 3,230 million barrels, while analysts expected an increase of 1.8 million barrels. Today's official data from the Ministry of Energy also showed a reduction of 6.368 million barrels.

In general, analysts predict a return of the «bullish» trend in the oil market. The range of oil prices remains stable with a lower limit of $86.5 per barrel. The intermediate support level is at $87.2 per barrel. Taking into account the approach to the upper limit of $88.90-89 per barrel, a downward correction is possible.

The situation in the Middle East also supports the oil market. If the conflict between Iran and Israel drags on for a long time, then the historical price maximum in oil futures will be updated. Although the current conflict is not a new situation in the Middle East, it can still have serious consequences for global oil transportation.