Brent crude oil dropped to a level of 53.82: general overview for December 02, 2015

February 12, 2015

Current trend

Brent crude oil dropped to a level of 53.82 yesterday owing to the news from the Middle East. Oil exporting countries are still competing for the market. Two OPEC members Iran and Iraq announced the highest discounts on hydrocarbons at the same time.   The discount Baghdad intends to make on its Basrah Light crude is $4.1 higher than the one its Middle Eastern competitors are offering. National Iranian Oil reduced the price of 1bbl by $2.1.

The increased world oil stocks and oil producing countries' output remain a strong factor that puts pressure on oil quotes. According to the US Department of Energy, oil stocks increased by 4,87 million barrels last week. The analysts polled by Bloomberg had expected an increase of only 3.75 million barrels. The output volume increased and amounted to a daily record of 9.23 bbl last registered in 1983.  The US took the lead in oil producing and outperformed Russia according to the results of the year 2014. 

Nevertheless, Brent quotes managed to undergo correction and rise above an important psychological level of 55 dollars. The price is currently located near a level of 57.00.

Support and resistance

Support levels: 57.37 (maximum of the Asian session), 60.00 (important psychological level), 62.00 (important psychological level), 63.49 (maximum of 18th December 2014).

Resistance levels: 55.97 (minimum of the Asian session), 53.82 (yesterday's minimum, 50% Fibonacci retracement), 52.30 (61,8% Fibonacci retracement, middle line of Bollinger bands), 50.00 (important psychological level).

Trading tips

If the current trend continues, short positions may be opened from a level of 57.40 with the nearest target at about 59.00. If the level 55.90 is firmly broken, Brent will head for the levels 54.00 and 52.30, from which an ascending movement can resume as part of technical correction.

Publication source
LiteForex information  LiteForex reviews

October 25, 2016
US flash Markit PMI jumped 1.7 points to 53.2 in October
Asian stock markets are mostly down, as the positive confidence indicators out of Europe and the U.S. yesterday were overshadowed by weak GDP numbers from South Korea, which weighed on most markets. Topix and Nikkei outperformed, with a weaker Yen underpinning exporters...
October 25, 2016
Fed speech, flash PMI push dollar to a fresh 8-month high
Marking the final day of Fed speeches ahead of the one-week blackout period starting today, FOMC voting member, Bullard said that December was most likely for a rate hike...
October 25, 2016
M&A activities drove equities, focus shifts to earnings
Equity markets began the week on a positive note with M&A activities, positive earnings, and better than expected manufacturing data from the Eurozone and U.S. all boosting appetite to risk...

FXTM Rating
Larson&Holz IT Ltd Rating
Vantage FX Rating
Fort Financial Services Rating
OANDA Rating
Tickmill Rating

Binary Brokerz Rating
EZTrader Rating
24option Rating
IQ Option Rating
OptionRally Rating
TropicalTrade Rating