Brent crude oil price retreat today amid worries that some signs of a second wave of coronavirus infections in South Korea, might cancel the reopening of the global economy. Crude oil price managed to rebound from historic low levels in April amid the global coronavirus lockdown as global oil demand plunged. Crude oil storage facilities shortage also pressured crude oil price. The Brent crude oil price has gained over 96% since the April 22 lows.
On Friday Baker Hughes reported that the number of operating oil and gas rigs fell to 74 in the week to May 8, the lowest level since 1940. The Energy Information Administration (EIA) reported the previous week that U.S. crude inventories rise by 4.6 million barrels. Analysts consensus was for a 7.8 million barrel rise.
Businesses’ reopening is bullish for crude oil as more and more workers return to their jobs will help increase the demand for oil. The consumption by U.S. car drivers is accounting for almost 10 of global oil supply.
The Brent oil price is 3.64% lower at $29.85 as the recent rebound from April lows stalled at the 50-day moving average around $30 per barrel. The technical picture for Brent crude oil remains bearish below the 50-day moving average while a credible break above might attract more bids and would cancel the recent bearish momentum.
On the downside, the initial support for the crude price is at $29.77 the daily low. Next support will be met at $27.81 the low from May 5. More bids might emerge at 25.23 the low from May 4.
On the contrary, Brent crude oil price first resistance stands at $30.96 the daily high. If the Brent crude oil price breaks above, the next resistance will be met at $32.24 the high from May 6 trading session. Next supply zone stands at $36.42 the high from April 9.