Brent crude oil price trades higher for one more day hitting the highest level since March 9 after Abu Dhabi said that it would cut crude supplies by 30%. More robust than expected economic data from China also helps the oil price while the refineries in U.S. Gulf Coast strangles to return to production after the hurricanes landing.
Early morning, the Abu Dhabi announced the reduction of October supplies by 30%, that is higher than the cuts in September, in a move to meet its commitment on the latest OPEC+ crude oil production cuts agreement.
China Services and Manufacturing PMI’s Improve
The services and manufacturing activity in China continues to improve and point to higher demand for crude oil. The Manufacturing PMI came in at 51, topping the estimates of 48.7 in August. The services PMI climbed at 55.2 above the expectations of 52.1 and slightly above the July reading of 54.2.
August will be the fifth straight month that the crude oil price will close with gains, as the rebound from April lows continues boosted by the OPEC+ production cuts. However, the global oil demand still lagging the pre-coronavirus levels.
Brent Oil Price Daily Analysis
The crude oil price is 1.36% higher at $46.47 as today’s move breaks above the 20-day moving average, thus enhancing the bullish outlook.
Crude oil price after spending a month consolidating above the $40 mark finally today managed to return back to March levels. A credible settlement today above $46 might challenge $50.33 the top from March 6.
On the downside, looking at the daily Brent Oil chart, the first support zone stands at $45.61 – $45.85 the daily low and the 200-day moving average. A break below would meet the next support at 44.51 the low from August 27. Bears would cancel the positive momentum if the price breaks below 43.75 the 50-day moving average.
Brent Crude Oil Daily Chart