Brent crude oil price extend loses for the third straight session on renewed concerns on the rising number of new coronavirus infections and some measures that might halt the recent economic recovery. The demand for crude oil has improved since the April sell-off as the majority of the countries started the reopening process from the coronavirus lockdown, and people return to their jobs and also began to travel.
Another reason for the recent pressures in crude oil is the rising tensions between USA and China, after Beijing ordered the closure of U.S. consulate in Chengdu in retaliation, following the move from the U.S. administration to close the Chinese consulate in Houston the previous week.
Higher crude oil stocks also don’t help the price. Energy Information Administration last week reported that Crude Oil Stocks Change in the U.S. came +4.89 million barrels for the week ending July 17. The figure came in higher than the analyst’s forecasts for a decline of 2.1 million barrels.
Brent Oil Technical Analysis
The Brent crude oil price is 0.53% lower at $43.02 as the price failed to break above 44.70 the four-month highs the previous week. The technical picture points to the continuation of the recent consolidation phase between 40 and 44 trading range.
On the upside, Brent crude oil price initial resistance stands at $43.39 the daily high for now. A strong close of the crude oil price above $43.39, then bullish traders would target $43.93 the high from Friday, July 24. In case of a breakout, the following supply zone for the Brent oil price stands at $44.77 which is the high from July 23.
On the other side, minor support for Brent oil is at $42.96 the daily low. Bears would meet the next support for the Brent price at $41.67 the low from July 14, before the price managed to reverse the morning loses. If the Brent oil price manages to breaks lower, the next target for bearish traders stand at $40.66 the 50-day moving average (SMA).
Crude Oil Price Daily Chart