Crude oil price on the Brent benchmark is shaking off earlier losses in the day and has returned to the green with a 0.6% increase to $43.34, despite less than optimistic price forecasts for 2021 were posted by oil giant ENI.
ENI scaled back on its long-term price forecasts on Tuesday as a result of the long-term impact it believes the industry would suffer as a result of the coronavirus pandemic. ENI has now fixed a price of $40 as its 2020 forecast for Brent, and $48 and $55 as its crude oil price projections for 2021 and 2022 respectively.
Technical Outlook for Brent Crude
Crude oil price activity has breached the symmetrical triangle on the daily chart. However, today’s candle needs to close above the triangle in order to fulfil the time filter confirmation rule. If this happens, crude oil price is cleared to aim for the 44.16 price resistance in the first instance. If price continues to advance above this area, 48.33 becomes the new target for bulls.
On the flip side, loss of momentum or a rejection at 44.16 allows for a pullback towards 41.43. Price support levels at 38.56, 35.61 and 31.69 remain viable downside targets, if demand concerns start to weigh on price once more.
Crude Oil Price Chart (Brent)