The prices for benchmark Brent crude oil continue their corrective movement, trading in the region of $ 68.30 per barrel. The quotes stopped their global growth and were fixed within a comfortable range.
Investors are monitoring the situation in Asia, where a new outbreak of the coronavirus pandemic has been recorded. It is still unknown to what extent this situation may affect demand. OPEC is to publish its monthly report today, and perhaps the situation will clear up. In addition, the US Department of Energy will present its short-term outlook on the situation in the energy market, and traders will be able to assess the effect of recent cyber attacks on the country’s fuel infrastructure.
If we pay attention to the situation in the global arbitrage position of the spread between Brent Crude Oil and WTI Crude Oil, then everything is quite calm, and the price difference has been kept in the range of $ 3.5-4 for a long time, which indicates the reluctance of large players to do something … Apparently, global investors are satisfied with the current quotes of the asset and the stable range of weekly volatility of 4-6%.
Support and resistance levels
On the local chart, the asset is growing smoothly within a fairly wide channel. Technical indicators are in a state of uncertainty: fast EMAs of the alligator indicator intertwined with the signal line, and the histogram of the AO oscillator is trading close to the transition level.
Resistance levels: 68.90, 70.30
Support levels: 67.70, 66.30
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