Brent crude oil price turns sharply lower during the American trading session as the fear about the second wave of coronavirus infections might cancel the global economic recovery. The Energy Information Administration (EIA) announced that the U.S. crude stockpiles increased by 5.65 million barrels for the week ended July 3, showing that the local lockdowns might have halted the increase for the physical demand of crude oil.
The crude oil price has stabilized below the recent highs, and the last two weeks has trapped between $42 and $44 as investors looking for the next catalyst that will drive the price of black gold.
The recent positive economic from China, USA, and Europe also boost crude oil price as it confirms the rebound in economic activity. Today the initial jobless claims also came better than estimates. The U.S. Initial Jobless Claims came in at 1314K, slightly below the forecasts of 1375K on July 3, and 99k lower than the previous week.
The Continuing Jobless Claims came in at 18.062M also below the forecasts of 18.95M on June 26, a drop of 698k from the previous reading. The Initial Jobless Claims 4-week average reported at 1437.25K for the week of July 3 below the previous week reading of 1503.75K.
Crude Oil Daily Technical Analysis
The Brent crude oil price is 1.71% lower at $42.59 as investors taking some profits off the table. The technical picture for Brent oil remains bullish for the short term despite today’s pullback. Only a break below the %40 mark might cancel the recent positive momentum.
On the downside, the first support for Brent oil is at $41.91 the daily low. Next support for the crude price will be met at $41.16 the low from July 1st trading session. If the Brent crude oil breaks lower, the next support zone stands at $37.57 the 50-day moving average.
On the contrary, crude oil price initial resistance stands at $43.47 the daily high. If the crude oil price breaks above $43.47, the next hurdle will be met at $44.02, the recent high from June 23rd. Next supply zone for the crude oil stands at $48.63 the 200-day moving average.
Brent Crude Oil Daily Chart