Brent crude oil price trade in positive territory for the fourth consecutive session as the crude oil price now gets strong support from the 100-day moving average. Crude oil price behaviour shows that bulls are in control.
Yesterday and despite a sharp drop in early USA trading session managed to return to gains. The selling pressure came after API reported that U.S. crude oil inventories rose by 3.9 million barrels for the week ending to June 12 to 543.2 million barrels, the expectations were for a fall of 152,000 barrels.
International Energy Agency raised the full-year crude oil demand forecast to 91.7 million barrels per day after the U.S. retail sales posted a record jump in May. OPEC previous forecast for global oil demand was at 9.07 million barrels per day.
A risk for the crude oil price is the rising number of new coronavirus cases that might halt the global recovery and the recent increase in physical oil demand.
The Brent crude oil price is 0.20% higher at $40.72 as the bulls are in driver’s seat above the 100-day moving average. Crude oil price managed to recover all the losses from Thursday’s sharp losses. Positive momentum would be threatened if the price breach below the 100-day moving average.
On the downside, immediate support for Brent crude oil is at $40.02 the daily low. Next support for Brent oil price will be met at $38.97 the low from yesterday’s trading session. If the Brent crude oil price breaks lower, the next support stands at $37.78 the 100-day moving average.
On the other hand, crude oil price resistance stands at $41.44 the daily top. If the crude oil price breaks above $41.44, the next supply zone will be met at $41.87 the high from June 10 trading session. Next resistance for black gold stands at $43.37 the high from June 8.