Brent crude oil price managed to recover from early losses as the sentiment remains fragile after yesterday’s sharp sell-off. A rising number of coronavirus infection in the USA increase the concerns about another wave of infections that might halt the global recovery. Dismal forecasts from the Fed also weigh in investors sentiment as point that the recovery in the economy will take more time than initially anticipated, and unemployment will take years to return to pre-coronavirus levels.
US crude oil inventories rose by 5.7 million barrels the previous week to a record high at 538.1 million barrels.
OPEC+ countries agreed in April to cut crude oil production by 9.7 million barrels per day, almost 10% of global production output, while reached a fresh agreement to extend the cuts for one month to the end of July.
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Brent Crude Oil Price Analysis
The Brent crude oil price is 0.90% higher at $38.64 adding almost two dollars from the daily lows in Asian trading. Crude oil broke below the 100day moving average yesterday but as of writing managed to return above keeping the positive momentum alive.
On the upside, Brent crude oil price resistance stands at $38.77 the daily high. If the Brent oil price move above $38.77, the next hurdle will be met at $41.09 the high from yesterday’s trading session. Next resistance stands at $41.95 the high from June 10.
On the other hand, support for Brent crude oil price is at $36.98 the daily low. Next support zone for oil will be met at $34.82 the low from May 29. If the Brent crude oil price breaks lower the next support stands at $33.35 the low from May 28.
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