Crude oil price on the Brent crude benchmark retained a bullish bias this Tuesday, after Chinese retail sales data and industrial production came out better than expected. This cements the Chinese economy’s recovery in 2020 and could have positive implications for crude oil demand in 2021.
This outlook served to boost crude oil price this Tuesday, allowing it to overcome potentially bearish news from Libya. After seeing its crude oil output fall to less than 100,000 per day in early 2020, Libya has increased production, following the country’s exclusion from the OPEC + alliance production cuts agreement. The OPEC + coalition reaffirmed Libya’s exclusion from any curbs in its meeting communique issued on 5 December. Crude oil price on the Brent crude benchmark is currently trading at a gain of 0.16% presently.
Technical Levels to Watch
The active price candle is challenging the 50.64 resistance level, with a symmetrical triangle seen on this resistance on the Brent crude’s daily chart. With the price trending upwards since 29 October, the bias is for the price to break above the triangle, targeting the 52.67 resistance level in the first instance.
On the flip side, a breakdown of the triangle allows crude oil price sellers to aim for a retest of 48.33, with 46.41 and 44.16 lining up as potential targets to the south.
Crude Oil Price Chart; Brent (Daily)