Crude Oil Price Facing a Tough Climb Above $44 As Investor Caution Seizes Markets
Crude oil price on the Brent crude benchmark remains unchanged as dwindling risky sentiment turns into full-blown investor caution. Thursday’s slip in crude oil prices was due to the continued increase in the number of coronavirus cases around the world. Concerns continue to mount over the impact this would have on crude oil demand for the rest of 2020 and into 2021.
Not much has happened this week in the financial markets as far as risky commodities are concerned. The OPEC + alliance meets later in the month to vote on extending production output curbs put in place earlier this year.
Technical Outlook for Crude Oil Price
Price action on the Brent crude benchmark has decidedly stalled at the 44.16 resistance level. However, a break above this area is needed to open the door towards 46.41. Above this level, 48.33 and 50.64 lining up as potential upside targets.
On the flip side, rejection from the present levels could allow for a pullback towards 42.50, with high potential for further decline towards 41.43 and possibly 39.57 if risk-aversion takes control of the markets.