Brent Crude Oil Price Continues the Correction From Five-Month Highs

Crude oil price
Crude oil price

Brent crude oil price trades lower in a volatile session that drove the price to the lowest level the last 15 days, amid a correction in equities and data released by Energy Information Administration. EIA reported that U.S. crude oil stockpiles drop 1.6 million barrels the previous week, to 512.5 million barrels, below the expectations for a 2.7 million-barrel drop. U.S. crude oil imports rose by 1.1 million barrels per day to 3.6 million barrels per day.

The fuel demand dropped by 14% from the previous year same period. Fuel demand falls by more than 2 million barrels per day to 17.2 million barrels per day.

OPEC+ countries, started a meeting yesterday to review the compliance levels of the agreement, as OPEC+ struggles to support price. Analysts expect the organization will not change its crude oil output policy, which now is for reducing the output by 7.7 million barrels per day, below the previous agreement of 9.7 million barrels per day output cuts.

Brent Crude Oil Price Analysis   

Brent crude oil price is 0.88% lower at $44.75 after it tested in early European session the $44 mark, thus keeping alive the positive momentum. Bulls need to break the critical resistance soon at the 200-day moving average at 46.20. 

If that doesn’t happen, a correction will target first today’s low at $44. A credible break below would open the way for $43.10 the 50-day moving average. Below that level, more sellers would join the action, and crude oil price might test the next support at 40.02 the low from June 29. 

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Brent Crude Oil Daily Chart

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