Brent crude oil price trade lower for second consecutive session halting seven consecutive trading sessions of gains. The profit-taking from the highest level since the March lows, started after the American Petroleum Institute (API) reported yesterday that U.S. crude oil inventories rose by 1.7 million barrels last week, well above the consensus expectations for a 300,000-barrel build.
The API also reported that U.S. gasoline fell, feeding optimism that physical demand is picking up as more and more economies exit the coronavirus lockdowns.
Meanwhile, a rising number of new coronavirus infections also put pressure in crude oil price that the second wave of coronavirus might halt the lockdown easing in some countries.
Supportive of the crude oil price remains the commitment of oil-producing countries to cut the production until the end of July.
The Brent crude oil price is 0.97% lower at $41.92 as the recent rally stalled at $44.18 per barrel. The crude oil price keeps the positive momentum as the price it is still trading above the rising trend line that started since the March lows and drove the oil price to recent highs. The technical picture for oil price remains positive for the short term as long as the price supported by the 100-day moving average. The longer-term view is bearish, and only a break above the 200-day moving average can cancel that momentum.
On the downside, first support for Brent oil is at $41.76 the daily low. Next support for Brent crude oil will be met at $39.97 the low from June 18 trading session. If the oil price breaks lower, the next support stands at $37.10 the 100-day moving average.
On the other side, crude oil price resistance stands at $42.87 the daily high. If the crude oil price breaks above $42.872, the next supply zone will be met at $43.96 the high from yesterday’s trading session. Next resistance for the Brent crude oil stands at $49.77 the 200-day moving average.