Brent crude oil prices continue to stage a good rally from the breakout of the price above the descending channel, ahead of the OPEC + alliance meeting next week. Driving this price move is new-found optimism about global recovery, as expectations of emergency use approvals for coronavirus vaccines hit fever pitch.
Analysts at Commerzbank also project that crude oil prices could be on their way to the August 2020 peaks and even higher, if the risk-tolerant environment continues to prevail.
Risky sentiment continues to prop up crude oil prices on the Brent and WTI benchmarks, allowing them to attain the highest prices that the market has seen since 9 March 2020. A flurry of fundamentals outlined in yesterday’s article continues to dominate market action. Positive vaccine news, possible maintenance of the present curbs on oil production output as well as rising speculative longs on the crude oil benchmarks as reported by the CFTC Positioning report, are all factors that have provided tailwinds for bullish action.
Brent crude oil is trading at intraday highs of 46.88 as at the time of writing.
Technical Outlook for Brent Crude
As Brent crude oil marches towards the 4th straight day of gains, today’s 2.43% move (at the time of writing) has violated the 46.41 resistance. Confirmation of this break allows 48.33 to come into the picture, with 50,64 lining up as a potential upside target for the future.
On the flip side, failure to confirm the break of the 46.41 resistance may allow for a pullback towards the 44.16 support line, followed by a potential decline towards 42.50. Additional downside targets lie at 41.43 and 39.57, with a move towards the early November trough at 36.40 relying on a breakdown of 39.57.
Crude Oil Price Chart; Daily