Brent oil is now back in the red on a year-to-date basis amid waning optimism surrounding China’s economic reopening while rising US inventories further dented sentiment.
Brent’s ascent that commenced in December had been halted at its 100-day simple moving average (SMA), with prices now faltering below another widely-followed technical indicator, the 50-day SMA.
Such price action now leaves the global oil benchmark on the cusp of recording back-to-back weekly drops, at the time of writing.
The OPEC+ decision to refrain from any supply intervention this week, leaving its output settings intact, only underscores the heightened uncertainties engulfing oil markets at present.
In order for Brent bulls to be reinvigorated, China’s economic reopening must produce firmer results while major central banks continue easing away from their hawkish policy stance to avoid triggering a deeper-than-feared global recession.
Brent oil is paring some of its gains this week, having rebounded off the psychologically-important $70 mark. Still, the global oil benchmark appears poised to head into the weekend having registered its first weekly advance in three weeks.
24 March 12:21
The global oil benchmark is endeavoring to pick itself off a 15-month low and trim its largest weekly drop so far in 2023. The outlook for short-term demand has been hit by contagion fears following the Silicon Valley Bank and Credit Suisse banking crises as risk-off appetite and dollar volatility roiled markets.
17 March 12:03
Brent’s climb above its 50-day simple moving SMA proved short-lived, as prices were resisted at their 100-day SMA before hurtling back down towards the psychologically-important $80/bbl mark.
10 March 12:36
At the time of writing, Brent has resurfaced above its 50-day simple moving average (SMA), while also breaking past the upper bound of its downtrend that began since June 2022, as it looks to register back-to-back weekly advances.
3 March 11:28
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