Current trend

Benchmark Brent Crude Oil prices are correcting in an upward trend below 73.00.

Quotations are supported by reports from news agencies, including Reuters, that OPEC is considering maintaining current production quotas and postponing the planned increase by 180.0K barrels per day to a later date. It was planned back in October, so many OPEC members are unhappy with the current restrictions. The indicators adjustment was postponed to December due to the fall in oil prices. Given the low demand for the asset, it may be postponed to the first quarter of 2025. Meanwhile, according to the American Petroleum Institute (API) report, oil reserves changed from 1.643M barrels to –0.573M barrels, and according to the Energy Information Administration of the US Department of Energy (EIA) – from 5.474M to –0.515M barrels.

According to the Chicago Mercantile Exchange (CME Group), after increasing to 1.3M positions, the trading volume of oil contracts decreased over the day to 850.0K transactions. Most of it is sales, and yesterday, they were partially bought out and partially liquidated.

Support and resistance

On the daily chart, the trading instrument is moving within the correction channel 78.30–65.30, slowing down the decline against the correction.

Technical indicators are holding the sell signal: the fast EMAs of the Alligator indicator are below the signal line, and the AO histogram has formed several downward bars in the sell zone.

Resistance levels: 74.20, 80.80.

Support levels: 70.90, 66.20.

Trading tips

Short positions may be opened after the price declines and consolidates below 70.90, with the target at 66.20. Stop loss — 73.00. Implementation period: 7 days or more.

Long positions may be opened after the price grows and consolidates above 74.20, with the target at 80.80. Stop loss — 71.00.