Brent Oil Drops, Market Warns of Oversupply
Brent oil prices fell about 3% in early European trading on Thursday (January 15). This decline came after a five-day rally, as geopolitical concerns eased and global oil inventory data showed ample supplies. Market sentiment was also weighed down by the strengthening US dollar, which makes oil more expensive for holders of other currencies.
Furthermore, expectations that OPEC and other producers will not immediately extend production cuts have kept price pressures in check. Brent's current weakness suggests the market is adjusting after the previous sharp spike, with traders taking advantage of the price gains of the past few sessions.
The oil price at the time of this analysis is $63.87
- Buy if the price moves within the $63.92 range
- Sell if the price moves within the $63.82 range
Resistance 2: $64.17
Resistance 1: $64.02
Support 1: $63.72
Support 2: $63.57
Disclaimer
This article is analytical in nature and is not a definitive reference. Please consider fundamental and technical developments in trading before making any investment decisions.
Source: Newsmaker.id