Brent crude oil price retreat as the optimism on the coronavirus vaccine evaporates. Worries on the rising number of new coronavirus infections rise after President Donald Trump said yesterday that the surge in COVID-19 cases in the country might get worse before it gets better, signalling a change in Trump’s approach of the coronavirus pandemic.
Energy Information Administration in its weekly report showed that Crude Oil Stocks Change in the US came +4.89 million barrels in the week ending July 17. The figure came in higher than the analyst’s forecasts for a decline of 2.1 million barrels.
The US crude oil refinery inputs averaged 14.2 million bpd for the same week, which was 103k per day less than the previous week’s average. The US crude oil imports averaged 5.9 million bpd last week, up by 373k bpd from the previous week.
Yesterday, the American Petroleum Institute reported that US crude inventories rose by 7.54 million barrels for the week ended July 17 a figure that doesn’t help the crude oil price.
Brent Crude Oil Technical Analysis
The Brent crude oil price is 0.56% lower at $43.71 as the price retreat from yesterday’s four-month highs. The crude oil price consolidates to recent highs, and the technical picture is positive for the short term as long as it holds above the 50-day moving average.
On the downside, the initial support for Brent oil is at $43.60 the daily low. Next support for the crude oil price will be met at $42.36 the low from July 20 trading session. If the Brent oil price breaks lower, the next support area stands at $40.05 the 50-day moving average.
On the flip side, Brent crude oil first resistance stands at $44.36 the daily top. If the crude oil moves above $44.36, the next hurdle will be met at $44.81 the high from yesterday’s trading session. The crucial supply zone for the Brent oil stands at $47.94 the 200-day moving average.