Brent Crude Oil Price Trade Close to March 9 Highs On Lower Crude Stocks

Crude oil price
Crude oil price

Brent crude oil price has moved the recent consolidation phase a step higher but continues in a tight trading range, keeping the positive momentum. Brent is trading higher today after the American Petroleum Institute reported that crude stocks fell by 4 million barrels the previous week, above the economist’s expectations for a draw of 2.9 million barrels. That was the third-week straight fall of stocks. Distillate and gasoline stocks also fell.

The Energy Information Administration revised downward the yearly production also supporting crude oil prices. EIA now estimates that U.S. crude production will fall by 990,000 barrels per day in 2020 to 11.26 million barrels per day, below the previous estimate of the 600,000 barrels per day decline.

Crude oil traders await the government data on crude oil production later on the day.

On the economic data front, the United States Consumer Price Index (CPI) came in at 0.6%, beating the expectations of 0.3% in July the yearly reading for the CPI came in at 1% topping the expectations of 0.8%. The Annual core CPI rises to 1.6% in July also above the expectations of 1.1%.

Brent Oil Price Daily Analysis   

The crude oil price is 1.63% higher at $45.32 trading close to daily highs as the bullish momentum targeting the strong resistance at the 200-day moving average. Brent oil has established a higher trading range between $44.30 and $57.70.  

The first resistance for crude oil stands at 45.39 today’s top. A break above might challenge 46.24 the high from August 5, which is also the highest level since the rebound from April lows. A break above the 200-day SMA at 46.72 would cancel the long term bearish momentum. 

On the contrary, initial support waits at 44.46 the daily low. More buying interest would emerge at 43.28 the low from August 4 trading session. A move below the 50-day moving average at 42.56 might accelerate the correction targeting 41.36 the Low from July 30. 

Don’t miss a beat! Follow us on Telegram and Twitter.

Brent Crude Oil Daily Chart

More content