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Brent Crude Oil Price Approach The Recent Highs On Recovery Hopes

Crude oil price
Crude oil price

Brent crude oil price adds over one percent amid optimism of a fast recovery and a sharp rally in stocks in China and Asian markets on Monday. Despite the record of new infections during the weekend in the USA, investors bet that the recent recovery will continue and the demand for physical crude oil will soon reach pre-coronavirus levels.

The recent positive economic data from the USA, China and Europe also boost crude oil as it confirms the rebound in economic activity.

The commitment of the OPEC members to the extension of the production cuts that agreed on April keeps the supply at low levels.

OPEC countries and Russia have agreed to cut crude oil production by 9.7 million barrels per day, that is almost 10% of global oil production output, and extended the cuts for an extra month till the end of July.

Crude Oil Daily Technical Levels  

The Brent oil price is 1.15% higher at $43.21 as the rally that started since the April lows continue. The crude price approaches the recent highs, while a break above the $44 per barrel might be the start for anew leg higher to $48. The technical outlook for crude oil is bullish for the short term, and only a pullback below the 36 would cancel the recent positive momentum. 

On the upside, crude oil price first resistance stands at $43.68 the daily high. If the crude oil price breaks above $43.68, the next supply zone will be met at $44.03 the high from June 23 trading session. Next critical resistance for the Brent crude oil stands at $48.89 the 200-day moving average.

On the flip side, the first support for Brent oil is at $42.72 the daily low. Next support for Brent oil will be met at $41.16 the low from July 1st trading session. If the Brent oil price breaks lower, the next support zone stands at $39.54 the low from June 25.  

Brent Crude Oil Daily Chart