Brent Prices Fall, Risk Premiums Begin to Shrink
Brent oil prices weakened on Monday (April 6), dropping around 0.8% to around $108 per barrel, after a strong rally last week as escalating conflict disrupted supply and shipping flows. This decline reflects a reduction in risk premiums as the market weighs the ceasefire framework and the likelihood of reduced logistical disruptions, although permits remain high around the reopening of the Strait of Hormuz and potential spending in the region.
On the supply side, OPEC+'s plan to increase production quotas in May also contributed to the halt in price increases, while market participants are focusing on developments in negotiations, the status of shipping lanes, and key oil inventory data.(gn)
The oil price at the time of this analysis was released was at: $104.47
- Buy if the price moves below $105.01
- Sell if the price moves below $104.20
Resistance 2: $106.27
Resistance 1: $105.46
Support 1: $103.84
Support 2: $103.03
Note:
This article is analytical in nature and is not a definitive reference. Please consider the influence of fundamental and technical developments on trading before making any investment decisions.
Source: Newsmaker.id
