Benchmark Brent crude prices reversed and declined, trading around $ 63.40 a barrel. The asset lost more than 10% as part of the correction relative to the highs around $ 70 per barrel.
At the beginning of the week, authorities in a number of European countries abandoned the use of the vaccine from AstraZeneca due to possible negative health effects. Yesterday, the European Medicines Agency said the drug is completely safe, but this did not convince the refused countries to include it in the vaccination plan again, and at the moment the boycott continues.
A prolonged suspension could lead to a disruption in the timing of vaccinations and to a significant slowdown in the pace of economic recovery in the eurozone, the world’s main consumer of petroleum products. The growth of quotations of the last month was largely associated with the hope for the early opening of air services in the EU, however, recent events no longer inspire hope for investors, and they, in turn, are massively fixing open positions.
Support and resistance levels
On the local chart, the asset left the boundaries of the global pattern “expanding formation” and, having broken the support line, is trying to gain a foothold below. Technical indicators turned around and gave a sell signal. The fluctuation range of the EMA indicator “alligator” again began to expand in the direction of decline, and the histogram of the AO oscillator moved into the negative zone.
Resistance levels: 64.80, 67.30
Support levels: 62.00, 59.00
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