Brent crude oil price trades higher today after yesterday’s sharp losses amid increased volatility. The crude oil price slumped this week as the fears for the lack of storage facilities pressures the price of WTI crude oil, yesterday the price hit almost $11 per barrel.
The price got support after yesterday the American Petroleum Institute reported that the crude oil inventories rose by 10 million barrels to 510 million barrels in the week ended April 24. The expectations were for a build of 10.6 million barrels. Oil traders await later today data from the Energy Information Administration on U.S. inventories.
Crude oil price positive news would be the easing of the coronavirus lockdown which would boost demand, and the implementation of global cut in oil production by 10 million barrels per day starting on May 1. Crude oil price fluctuations will continue until we have clear signs that the global economy is back on track.
Download our Q2 Market Global Market Outlook
Brent Crude Oil Price Support and Resistance
The Brent crude oil price is 2.35% higher at $20.46 recovering some of yesterday’s losses, as the sentiment remains fragile due to storage facilities shortage. The technical outlook remains bearish for the Brent crude oil price, and lower levels can’t be ruled.
On the upside, Brent crude oil price initial hurdle stands at $21.29 the daily high. If the crude oil price breaks above, the next resistance will be met at $22.18 the high from yesterday’s trading session. Next supply zone stands at 23.18 the high from April 24.
On the other side, the first support for Brent crude oil price is at $18.73 the daily low. Next support will be met at 18.00 psychological mark, which guards the recent lows at $16.00.
Don’t miss a beat! Follow us on Telegram and Twitter.
More content
- Download our latest quarterly market outlook for our longer-term trade ideas.
- Follow Nikolas on Twitter.
- Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.