Brent crude oil price consolidates around the 42 mark as traders focus on the new coronavirus cases resurgence in Europe that might halt the economic rebound. The UK is discussing new restrictions measures while Spain is planning to impose full lockdown in Madrid. Crude oil price started a correction in early September from five-month highs. Recent hectic economic data from the USA weigh on crude oil price showing that demand for crude oil would need months or even years to reach pre-coronavirus levels. August durable goods orders rose by 0.4% well below the expectations of a 1.5% advance.
Libya Starts Exports
At the supply side one new factor entered the equation the previous week. Libya has opened its ports and would start oil exports at a moment that OPEC is planning to reduce oil production and impose new restrictions on its members. Meanwhile, Venezuela and Iran planning to increase crude oil production. Last week the Baker Hughes announced that the number of oil rigs continues to rise in the USA for the second straight week.
Brent Oil Price Analysis
Brent crude oil price is 0.45% lower at $41.63 hovering above the critical 100-day moving average support. After a sharp correction the previous week crude oil price found support at $41. The technical picture has deteriorated since the oil price broke below the 50-day moving average on September 3.
Resistance for Brent oil price stands at 42.26 the high from Friday. More selling pressure would await at 42.54 the high from September 23. Next obstacle is the 200-day moving average at 43.40.
On the other hand, support for crude oil is at 41.49 the 100-day moving average. A break below might attract more offers targeting 40.55 the low from September 16. The three-month lows at 39.29 would provide the next support zone.