Today, during the Asian session, Brent crude oil prices show flat dynamics, consolidating near the $ 69 per barrel mark.
Yesterday, the rate steadily declined in response to growing investor fears about the surge in the incidence of coronavirus in the world. Experts believe that an increase in the number of new cases will soon lead to additional restrictive measures and a decrease in demand for petroleum products in all industries. In addition, this could overlap with OPEC + ‘s plans to increase production, as a result of which the imbalance in the market will widen.
On Tuesday, additional pressure on the instrument came from the report of the American Petroleum Institute (API) on energy reserves in the United States. For the week of July 16, the figure for the first time since May 14 rose by 0.806 million barrels after falling by 4.079 million barrels in the previous period. Markets are awaiting official stock data from the Energy Information Administration (EIA) on Wednesday. Previous forecasts for the indicator assumed a decrease in reserves by 4.167 million barrels.
Support and resistance levels
On the daily chart, Bollinger Bands are turning into a horizontal plane. The price range remains almost unchanged, indicating an approximate balance of power in the short term. The MACD indicator is going down, maintaining a strong sell signal (the histogram is below the signal line). Stochastic maintains a confident downward direction, but quickly reaches its minimum values, indicating the risks of a corrective growth.
Resistance levels: 70.30, 72.90, 73.50, 75.00
Support levels: 69.00, 67.00, 65.50
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