Brent Crude Oil Calm Ahead of US Oil Rig Count Data
Crude oil price on the Brent benchmark resumed its push towards the elusive $50 mark this Thursday, as renewed hopes for global recovery and greater oil demand fuelled bullish flows.
Brent crude is up 1% this Thursday after it managed to shake off an enormous increase in crude oil inventories, as reported by the EIA on Wednesday. Adding to the black gold’s gains was the bearish sentiment on the greenback ahead of the Initial Jobless Claims report.
The OPEC+ alliance’s decision to stagger its production output increases was what set the pace for the recent upside on crude oil price benchmarks. Commencement of coronavirus vaccinations and the report that China’s version of the vaccines was 85% effective has set off a new round of risk flows that benefits crude.
Brent crude now trades at $49.64 presently.
Crude oil price on the Brent benchmark looks well on its way beyond the $50 mark, as it targets the 50.64 resistance in continuation of the bounce from the 48.33 support line. The bullish flag’s measured move may take the market towards the 52.67 resistance, but this would need strong bullish momentum to take out 50.64.
On the flip side, a rejection at 50.64 could allow for a pullback towards 48.33 once more. A breakdown of this area opens the door towards 46.41, and this could invalidate the pattern and its bullish expectations.
