At yesterdays trading session the price of crude oil Brent fell below $77 per barrel, which is the lowest level since August 2010. Oil price goes down prior to OPEC meeting, which will be held in Vienna. Market participants fear that Ministers of OPEC countries will not be able to come to agreement about reduction of the oil production in order to stabilize oil prices. At the recent meeting, representatives of the Saudi Arabia failed to reach agreement with Venezuela and Mexico concerning the reduction of the oil production. Saudis insist that market can adjust prices without external influence. Amid such facts the price of Brent is rapidly decreasing.
Support and resistance
Support levels: 76.25, 75.00, 74.00 and 73.00.
Resistance levels: 77.60, 78.60, 79.40, 80.60 and 81.60.
The key fact, which will determine movement direction in Brent for the near future will be OPEC meeting. If the decision to reduce oil production will be adopted, the price of oil will go up. Otherwise, the decline in price will continue.
Analyst of LiteForex Investments LimitedPublication source