Brent Technical Analysis
Brent markets mirrored this behavior, pulling back sharply from the 50-day EMA and wiping out most of the previous session’s gains. The $65 level has acted as resistance, with the 50-day EMA reinforcing that ceiling. A decline from here could send prices toward $62.80, and a break below that may open a path to $60. Short-term rallies continue to offer selling opportunities at the first signs of exhaustion, given the persistent oversupply in global crude production, and the potential lack of demand for oil with the global economy slowing down a bit.
The United States, Russia, and OPEC all continue to produce large volumes of oil, leaving supply conditions heavily imbalanced. Although new sanctions have been placed on Russian exports, such measures have been imposed intermittently for nearly a decade with little lasting impact, as we have seen time and time again. At this point, the oil market is completely saturated, while the demand is a bit dampened.
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