Crude oil Brent continues to be under pressure, maintaining position below 100 USD per barrel. The nearest resistance level is 98.44. If the price does not try to go up higher, the price of oil can drop to 90.00 USD per barrel.
Experts believe that one of the reasons of decline is strengthening of the USD against other major currencies, which indicates recovery of the US economy. On the other hand, OPEC can provide long-term support to the “black gold,” as it has already announced about possibility of reduction of oil production by 500 thousand barrels per day in 2015. Other positive factor, which prevents further decline in oil price - is the reduction of oil supply from Libya because of the damage of the oil storage in one of the plants of Zawiya.
Support and resistance
The nearest resistance level is Murray line of 6/8 (98.44). Support levels is 97.66 (5/8 Murray line).
It is recommended to open short positions after breakdown of the level of 97.66 with protective order at 98.00 and a target of 95.20.