Crude oil price on the Brent crude benchmark has kicked off the new month on a bullish note, as the EU appears to have settled its rift with pharma companies over the delays in coronavirus vaccine supplies.
A preliminary data stream from the CME Group indicates that open interest on crude oil futures saw an additional 10,000 contracts while volume shrunk by 30,000 contracts.
Crude oil prices saw a significant boost at the end of last year, as coronavirus vaccines were rolled out and Saudi Arabia performed a voluntary output cut to add to what was agreed in the January OPEC + meeting. However, demand for crude oil has waned as new coronavirus variants have emerged, casting doubt as to whether the current vaccines will work over time. Even at that, the rollout of vaccines has been patchy and slow. The UK, US & Europe are first in line to get vaccines, while African countries are having to face waiting periods of up to 6 months to get any sizeable quantities, sparking fears of uneven global recovery.
Crude oil price on the Brent benchmark is 1.00% higher as at the time of writing.
Technical Outlook for Brent Crude
Today’s upside move has temporarily halted the expected slide, following last week’s breakdown of the ascending support trendline. This renewed upside move could target the 56.47 resistance initially, with 57.47 serving as an additional target.
On the flip side, a rejection at the trendline’s intersection with the 56.47 resistance could initiate a pullback towards 53.99, with 52.38 and 50.92 forming additional targets to the south.
Brent Crude; Daily Chart