Brent Crude Oil: prices are recovering after a significant drop
Current trend
This week, Brent Crude Oil quotes are growing, recovering from a serious decline last week.
Several positive factors provide support to prices. First of all, concerns about the spread of the Omicron coronavirus strain have eased significantly. It was assumed that the increase in the incidence of the new virus would lead to the introduction of serious quarantine restrictions and a decrease in energy demand. However, early results from the omicron study were encouraging, with South African health officials reporting that infected patients had only mild symptoms. Thus, the pressure of the new virus on the economy may not be so serious.
Also, the asset is growing against the background of problems in negotiations on a nuclear deal between Iran and representatives of European countries. Yesterday, German negotiators called the Iranian position unrealistic, after which further consultations were postponed. The inability to arrive at a result satisfying all parties postpones the launch of additional volumes of cheaper Iranian "black gold" on the market. Finally, the positive news for the market was the decision of Saudi Arabia to increase the official selling prices for all grades of oil sold to Asia and the United States from January.
Overall, optimism is returning to the market. Today, investors await a report on US reserves from the American Petroleum Institute (API). Previously, the figure fell by 0.747M barrels. The continuation of this trend may provide additional support to oil prices.
Support and resistance
Now the price is close to 75.00 (Murrey [4/8]), which breakout allows growth to 77.00 (Bollinger bands' midline) and 81.25 (Murrey [6/8]). The breakdown of 71.87 (Murrey [3/8]) allows a decline to 68.75 (Murrey [2/8]) and 65.62 (Murrey [1/8]).
Technical indicators do not give a general signal: Bollinger bands are directed downwards, confirming the continued downtrend. However, Stochastic is directed upwards, and MACD falls in the negative zone, not excluding the continued growth.
Resistance levels: 75.00, 77.00, 81.25.
Support levels: 71.87, 68.75, 65.62.
This week, Brent Crude Oil quotes are growing, recovering from a serious decline last week.
Several positive factors provide support to prices. First of all, concerns about the spread of the Omicron coronavirus strain have eased significantly. It was assumed that the increase in the incidence of the new virus would lead to the introduction of serious quarantine restrictions and a decrease in energy demand. However, early results from the omicron study were encouraging, with South African health officials reporting that infected patients had only mild symptoms. Thus, the pressure of the new virus on the economy may not be so serious.
Also, the asset is growing against the background of problems in negotiations on a nuclear deal between Iran and representatives of European countries. Yesterday, German negotiators called the Iranian position unrealistic, after which further consultations were postponed. The inability to arrive at a result satisfying all parties postpones the launch of additional volumes of cheaper Iranian "black gold" on the market. Finally, the positive news for the market was the decision of Saudi Arabia to increase the official selling prices for all grades of oil sold to Asia and the United States from January.
Overall, optimism is returning to the market. Today, investors await a report on US reserves from the American Petroleum Institute (API). Previously, the figure fell by 0.747M barrels. The continuation of this trend may provide additional support to oil prices.
Support and resistance
Now the price is close to 75.00 (Murrey [4/8]), which breakout allows growth to 77.00 (Bollinger bands' midline) and 81.25 (Murrey [6/8]). The breakdown of 71.87 (Murrey [3/8]) allows a decline to 68.75 (Murrey [2/8]) and 65.62 (Murrey [1/8]).
Technical indicators do not give a general signal: Bollinger bands are directed downwards, confirming the continued downtrend. However, Stochastic is directed upwards, and MACD falls in the negative zone, not excluding the continued growth.
Resistance levels: 75.00, 77.00, 81.25.
Support levels: 71.87, 68.75, 65.62.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.