Current trend

Benchmark Brent Crude Oil prices are correcting in a downward trend, trading slightly above 74.00 amid geopolitical uncertainty. Thus, Israel has not yet responded to Iran’s missile attack, which has eased tensions in the market and put pressure on the asset.

Meanwhile, the International Energy Agency (IEA) published its October report on the oil market. Experts expect that in 2024, oil demand will grow by 862.0K barrels per day, below the estimates of 903.0K barrels per day previously, and global demand will amount to 102.84M barrels per day compared to the previous estimate of 103.94M barrels per day. The adjustment of expectations occurs against instability in the Chinese economy, which provided up to 70.0% of demand in 2003. Now, analysts believe that China’s influence is only about 20.0%, and the estimate of oil consumption in 2024 has decreased by 70.0K barrels per day to 580.0K barrels per day.

Today at 22:30 (GMT 2), the American Petroleum Institute (API) data on oil reserves is due. This week, it may change from 10.900M barrels to 3.200M barrels. Tomorrow’s report from the Energy Information Administration of the US Department of Energy (EIA) may record a correction from 5.810M to 2.300M barrels.

Support and resistance

On the daily chart, the trading instrument is moving within the correction channel 79.50–68.00, adjusting to the channel support line.

Technical indicators are slowing down the buy signal: fast EMAs of the Alligator indicator are approaching the signal line, and the AO histogram is forming downward bars in the buy zone.

Resistance levels: 75.40, 79.20.

Support levels: 73.20, 69.80.

Trading tips

Short positions may be opened after the price declines and consolidates below 73.20, with the target at 69.80. Stop loss — 74.50. Implementation period: 7 days or more.

Long positions may be opened after the price grows and consolidates above 75.40, with the target at 79.20. Stop loss — 74.00.