Crude Oil Price Stalls As Bullish Fundamental Support Dries Up
As crude oil prices on the WTI and Brent crude benchmarks face a lack of fundamental support amid alternating fundamentals, price activity seems to have stalled just above the $44 mark.
Upside momentum in the recent recovery in crude oil prices has dried up and only the positive coronavirus vaccine announcements are allowing crude oil prices withstand the headwinds of demand dropoff from the 2nd coronavirus wave. Yesterday’s steeper-than-expected drop in the US crude oil inventories may also be a factor that has helped to keep prices above $44.
Crude oil price action will therefore wait on the net summit of the OPEC + alliance, where a final decision could be made on whether the oil cartel will suspend the previous cut limitations in January as decided on in previous meetings, or whether there will be an extension of the production output cuts for another three months.
Crude oil price on the Brent benchmark is down 0.45% this Thursday.
Technical Outlook for Brent Crude Oil
The ascending triangle that is forming on the daily chart is nearing its resolution. The technical expectation of the pattern is for uptrend continuation. This move would require sufficient buying momentum to break the 44.16 resistance, which then brings 46.41 into focus. 48.33 and 50.64 mark price levels that may serve as additional targets to the north.
A breakdown of the triangle’s lower border negates the bullish resolution of this pattern, which opens the door for the 42.50 support level to come into play. 41.43 and 39.57 are additional downside targets.