Brent oil continues to trade downwards despite a slight correction of the lowest value at 62.06. The commodity is under pressure owing to the US dollar consolidating against major currencies. For example, the USD index rose 0.4% to a level of 97.7 over the last 5 weeks.
Besides, official data on crude oil and oil products stocks are forecast to remain the same (2.674 million), which badly affects the rate of black gold as well. Also, remember that growth of prices may bring about an increase in Saudi oil production as they will want to protect their market share.
Support and resistance
The nearest resistance level is 63.28 (1/8 Murray). The support level is at 62.50 (0/8 Murray).
Go short after a level of 62.50 is broken and place protective orders near a level of 63.00 with a target at 60.33.Publication source