Brent Crude Oil: IEA expects continued growth in oil production
Current trend
Brent crude oil prices are correcting downward, trading around 80.90, amid continued increases in oil production and rising US inventories.
The International Energy Agency (IEA) published its report on the energy market yesterday. The updated forecast for oil production in 2021 amounted to +480K barrels instead of the expected increase of 390K barrels a month earlier. The upward revision was made after analyzing production levels in non-OPEC+ countries, where the indicator increased by 240K barrels per day in Q4 2021.
In turn, oil production in October increased by 1.4M barrels compared to September, amounting to 97.7M barrels per day. For November, the IEA predicts a continuation of the increase in oil production by 1.5M barrels per day, which may put negative pressure on quotations, as demand is recovering more slowly than supply increases.
Additional pressure on oil prices was exerted by the report of the American Petroleum Institute (API), according to which weekly stocks of crude oil in the USA increased by 0.655M barrels after falling by 2.485M barrels a week earlier.
Support and resistance
On the global chart, the asset continues to actively decline, forming a new downward wave. Technical indicators have already reversed and issued a sell signal: the range of EMA fluctuations on the Alligator indicator began to expand towards decline, and the histogram of the AO oscillator moved to the sales zone, forming new bars with a tendency to decline.
Resistance levels: 82.45, 85.73.
Support levels: 79.85, 76.92
Brent crude oil prices are correcting downward, trading around 80.90, amid continued increases in oil production and rising US inventories.
The International Energy Agency (IEA) published its report on the energy market yesterday. The updated forecast for oil production in 2021 amounted to +480K barrels instead of the expected increase of 390K barrels a month earlier. The upward revision was made after analyzing production levels in non-OPEC+ countries, where the indicator increased by 240K barrels per day in Q4 2021.
In turn, oil production in October increased by 1.4M barrels compared to September, amounting to 97.7M barrels per day. For November, the IEA predicts a continuation of the increase in oil production by 1.5M barrels per day, which may put negative pressure on quotations, as demand is recovering more slowly than supply increases.
Additional pressure on oil prices was exerted by the report of the American Petroleum Institute (API), according to which weekly stocks of crude oil in the USA increased by 0.655M barrels after falling by 2.485M barrels a week earlier.
Support and resistance
On the global chart, the asset continues to actively decline, forming a new downward wave. Technical indicators have already reversed and issued a sell signal: the range of EMA fluctuations on the Alligator indicator began to expand towards decline, and the histogram of the AO oscillator moved to the sales zone, forming new bars with a tendency to decline.
Resistance levels: 82.45, 85.73.
Support levels: 79.85, 76.92
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