BRN Struggles Below 200-Day SMA Amid OPEC+ Uncertainty

BRN bulls are trying to stabilize around $81.24/bbl after oil prices experienced a ~1% decline on Wednesday, before swiftly paring much of those knee-jerk declines.

 OPEC+ will instead hold this meeting online, on November 30.

Prior to the delay, markets had leaned towards an extension of Saudi Arabia’s unilateral 1 million bbl/day production cut with the potential for other OPEC members to join them.

With the current de-escalation in the Middle East and still murky prospects for a global oil demand in 2024, BRN might be on track to seal back-to-back monthly declines.

On the supply side, the higher-than-expected (8.7M vs 1.6M expected) change in US crude oil inventories reading before Thanksgiving, along with a potential increase in supply from outside of the OPEC+ circle are adding additional downward pressure to the oil prices.
 

From a technical perspective…

  • The Relative Strength Index (RSI) is positioned close to the middle line at 43.47 (<30 – oversold; >70 – overbought), suggesting that markets are at a crossroad as investors await further developments
  • The current price, trading below all three major SMAs (21, 50 & 100-period) may count as a signal for a continuous downtrend
  • The $80/bbl psychological level may prove to be a strong support level
  • To the upside, the $85/bbl and 21-period SMA at $82.695 may act as immediate resistance levels

More By This Author:

USDJPY To Hit 150.055 Resistance Level?
Bitcoin Tracks Sideways Amid Binance Volatility
This Week: Nasdaq 100 Traders’ Attention On FOMC And Nvidia

Disclaimer: Forecasts which are made in the review constitute the personal view of the author. Commentaries made do not constitute trade recommendations or guidance for working on financial ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.
Or Sign in with