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The Brent Crude Oil Market is Waiting for OPEC Decisions

8/2/2022 12:29 PM

During the Asian session, Brent Crude Oil prices are slightly declining, developing the "bearish" impulse formed yesterday, and testing the level of 98.60 for a breakdown, renewing local lows since July 25.

Investors are focused on tomorrow's OPEC meeting at 12:00 (GMT+2), in which the leading fuel producers can adjust its production volumes. At the moment, the cartel is not bound by any agreements to limit the rate of increase in production since the previous agreements have already expired. It is obvious that the alliance is trying to prevent an imbalance in supply and demand in the market, especially given that the global economy is still not showing sustainable signs of growth.

Yesterday, investors reacted extremely negatively to statements by representatives of the National Oil Company of Libya about the restoration of the production of "black gold" to April levels. According to the country's oil minister, Mohamed Oun, in July, after the removal of force majeure, the daily figure reached 1.2M barrels.

On Tuesday, trader wait for the report of the American Petroleum Institute (API) on US energy stocks for the week of July 29: the previous statistics showed a sharp drop of 4.037M barrels, which provided moderate support for quotes.

On the daily chart, Bollinger bands are moving flat: the price range narrows, indicating an ambiguous nature of trading in the short term. The MACD indicator is falling, keeping a poor sell signal (the histogram is below the signal line). Stochastic shows a more confident decline but at the moment it is rapidly approaching its lows, indicating that the instrument may become oversold in the ultra-short term.

Resistance levels: 100.00, 102.57, 106.00, 109.00. | Support levels: 96.50, 93.34, 91.00, 89.00.

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