Brent Crude Could Fall to $64.8 per Barrel On Saudi Data

Alpari

Oil quotes could not overcome the resistance level and dropped once again. Brent crude at 11:15 EET was trading around at $65.44, whilst WTI with June delivery was trading at $59.63 per barrel. At Monday’s close, North Sea oil on June contracts was trading at $66.32 a barrel and the price of light crude with delivery in June at the close of the New York session was $60.43 per barrel.

Oil prices falling on Tuesday depends on both technical and fundamental factors. From a technical analytical perspective, oil prices were stuck again by the resistance line and couldn’t overcome it. Brent’s hard to break resistance is currently $70, whilst WTI’s is $62. Thus, the current decrease can be considered as a technical correction.

From a fundamental point of view, Saudi Arabia brought bad news to the market by publishing a statistic which showed that their export value is at its maximum since 2005.

Today the oil quotes will continue to fall. The price of Brent could drop to $64.8, whilst WTI could hit $58.8 a barrel.

Latest reviews

Brent stumbles on stronger US dollar

Oil benchmarks are slipping into the weekend as the US dollar continues pushing higher following the Fed’s recent overt signal to keep pressing on with its aggressive fight against inflation.

23 September 12:21

100bps Fed rate hike could drag oil lower

If the Fed triggers a gargantuan 100bps hike next week, or signals to the markets that the 4.5% peak for the ongoing rate hike cycle is inadequate to tame stubbornly elevated inflation, that may well translate into Brent revisiting its recent cycle low around $87/bbl.

16 September 10:55

Brent oil dragged lower by demand fears

Brent oil is trying to claw its way back above the psychologically-important $90/bbl level, even as it continues to trade around its lowest levels since February. Oil bears took their cues from the “death cross” that formed earlier this week, with the ensuing losses lending credence to such a bearish technical signal.

9 September 12:46

Brent braces for surprise OPEC+ hike

Brent is attempting to hold steady, having plunged back below the psychologically-important $100/bbl mark this week and trading below its 200-day simple moving average (SMA) once more.

2 September 12:13

OPEC+ supply curbs should keep Brent above $100

Oil prices have been given a lift at the prospects of OPEC+ supply cuts in a bid to offer stability to markets. Brent oil has been restored to levels around the psychologically-important $100/bbl line, though remains capped by its 50-day simple moving average for the time being.

26 August 12:01