Crude Oil Prices Trade Marginally Higher, But Headwinds Persist

Crude oil prices are up on the day after Libya declared a Force Majeure on its Hariga port. 

Brent crude hit 1-month highs after a disruption of exports from the Libyan port of Hariga arose from a budget dispute. The Libyan government says that the dispute could also impact other facilities. The Hariga force majeure could shut in 180,000 barrels of crude oil exports a day from Libya and could become significant in global supply dynamics. 

However, the upside in crude oil prices was capped as rising coronavirus cases in Asia’s largest crude importers sparked some demand concerns. 

Crude oil price on the Brent benchmark is presently up by 0.39% and trades at $67.30 as of the time of writing. The asset had earlier traded for as high as $68.04, before retreating at a crucial price resistance.

Technical Outlook for Brent Crude

The daily candle was resisted at the 67.74 barrier and this has led to an intraday pullback on price. This intraday rejection at 67.74 also comes off the channel’s upper border, acting as a second reinforcement of price resistance. The candle presently resembles a pinbar. If it ends the day in this manner, then we could see a pullback towards the 66.81 support line. Below this level, 65.95 and 64.26 could become additional targets if the decline is extensive. 

On the other hand, recovery of crude oil prices on the Brent benchmark could follow a break above the 67.74 resistance barrier. This sets up a chance to aim for the 70.00 psychological resistance mark, with uncapping of this level possibly leading to the attainment of the 71.44 price level.

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Crude Oil Price (Brent); Daily Chart

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