Current trend

Brent Crude Oil has been hovering around the annual low of 70.00 dollars per barrel for a long time, and one of the key factors remains fears of reduced demand from major consumers, particularly China.

Thus, the report of the Energy Information Administration of the US Department of Energy (EIA) reflected a change in the forecast for global energy consumption growth for the current and next years. The 2024 figure could be 103.08M barrels per day, an increase of 0.940M barrels per day, and in 2025 — 104.6M barrels per day, an increase of 1.52M barrels per day. As a result, the values ​​were adjusted by –210.0K barrels per day and by 340.0K barrels per day, respectively.

According to the American Petroleum Institute (API), oil reserves changed by –2.790M barrels compared to –7.400M barrels a week earlier, the third decrease in a row. The EIA statistics reflected an increase in reserves by 0.833M barrels after a correction by –6.873M earlier, for the first time in the last four weeks. It did not affect the quotes due to the total volume of the decline exceeding 35.0M barrels.

Support and resistance

On the daily chart, the trading instrument is moving below the correction channel of 84.00–72.50. Technical indicators maintain a stable sell signal: fast EMAs of the Alligator indicator are moving away from the signal line, and the AO histogram is forming correction bars in the sell zone.

Resistance levels: 71.70, 75.40.

Support levels: 69.40, 65.70.

Trading tips

Short positions may be opened after the price declines and consolidates below 69.40, with the target at 65.70. Stop loss is 71.00. Implementation period: 7 days or more.

Long positions may be opened after the price grows and consolidates above 71.70, with the target at 75.40. Stop loss is 70.00.