Crude oil prices are up today, with the Brent crude benchmark registering a 0.67% upside move. This move comes as Reuters reports that the OPEC+ Joint Technical Committee’s (JTC) will keep its global oil demand growth forecast for 2021 unchanged. This forecast is currently at 5.95 million barrels per day.
Improving demand outlook is also helping to prop up prices ahead of the OPEC + meeting this week to determine the production quotas from now on.
Brent crude is set for the 2nd consecutive winning month, as oil demand growth is expected to outstrip supply. This may explain why crude oil prices will end the month higher despite April’s cutback in production curbs by the OPEC + alliance.
Technical Levels to Watch
The intraday bounce by the active daily candle maintains the channel’s integrity and allows crude oil price on the Brent benchmark to retest the 70.00 psychological resistance. If this level is broken, the current 2021 highs at 71.44 come into view. A break of this level sends Brent crude to new 2021 highs, with the 73.34 price target in sight.
On the other hand, a reject at 70.00 puts the channel’s lower boundary at risk. If this boundary gives way, we could see a measured move towards the 64.26 price support. This move would require the 67.74 and 65.95 price levels to give way. Below 64.26, 62.21 comes into the picture as an additional downside target.