Current trend
Despite the fact that commercial oil reserves in the USA decreased by 5.6 million barrels for the first time over 10 weeks, Brent rate has declined. The meeting of OPEC countries has had more significant impact on the quotes of Brent. At the last meeting, which was held on Wednesday, 4 December, participants decided to leave production quotas unchanged at the level of 30 million barrels per day. This decision was based on the fact that prices in the commodity market are at the optimum level for all parties. Market has declined in response to this news, which prevented consolidation of the instrument near resistance level of 113.00.
Support and resistance
Resistance levels will be the local highs, which the price has tested twice during the week (112.10 and 113.00). Support to the “black gold” will be provided by the recent lows of 110.70 and 110.00.
Trading tips
It is advisable to open long positions with the target of 113.00, following breakdown of the level of 112.10. Pending sell orders can be placed below the level of 110.70.
Vadim Smarzh
Analyst of LiteForex Group of Companies
