Brent Crude Oil Price Rally Runs Out Of Steam

Brent crude oil price slide on Friday as the fear of a second coronavirus wave rises after the U.S. reported yesterday record number of new infections. Investors worry that a second wave might halt the reopening procure or even some states return to a new lockdown.

Brent crude oil price has gained over 114% since the April 22 lows amid the coronavirus crisis. As the physical demand gradually returns, investors drove the price above the 40 mark. This week crude oil price rally stalled below the $44 mark, and bulls look exhausted at least for now.

Earlier this week, the American Petroleum Institute (API) reported that U.S. crude oil inventories rose by 1.7 million barrels the previous week, well above the analysts’ expectations for a 300,000-barrel build.

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Crude Oil Price Daily Technical Levels

The Brent crude oil price is 1.25% lower at $40.90 as the recent rally run out of steam below the $44.18 per barrel. The crude oil price trades for the second day below the rising trend line that started from April lows. The technical outlook remains positive for the short term as long as the price stays above the 100-day moving average, but a further correction can’t be ruled out. 

On the downside, initial support for Brent crude oil is at $40.64 the daily low. Next support for Brent crude oil will be met at $39.55 the low from yesterday’s session. If the Brent oil breaks lower, the next support stands at $36.80 the 100-day moving average. 

On the flip side, crude oil first resistance stands at $41.77 the daily top. If the crude oil price breaks above $41.77, the next supply zone will be met at $42.87 the high from June 24 trading session. Next critical resistance for the Brent crude oil stands at $49.52 the 200-day moving average.

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