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Brent Crude Oill Prices Show Flat Dynamics

8/23/2022 12:00 PM

During the Asian session, Brent Crude Oil shows ambiguous dynamics, consolidating near 96.50.

Yesterday, the quotes showed a rather active decline. However, by the end of the trading session, the trading instrument recovered fully, which was facilitated by investors' fears about the deterioration of economic activity in the world. Also, at the beginning of a new trading week, the US dollar is inclined to a moderate correction, retreating from its local highs, renewed against several competitors.

In turn, the pressure on the asset is exerted by an increase in the oil supply from the United States and Brazil to Asian markets. Against the existing risks of a further reduction in the oil supply from Russia due to new sanctions from the EU, alternative channels for obtaining oil are playing an increasing role.

Traders also expect that by the end of the year, Iranian oil, which has long been under sanctions, will begin to enter the market. Trilateral talks have been going on for more than a year now, and according to observers, an agreement between official Tehran and Western countries on a nuclear deal is close to signing. According to average analyst estimates, Iran can supply more than 1M barrels of oil per day.

On the daily chart, Bollinger bands reverse into a horizontal plane: the price range remains practically unchanged, indicating an ambiguous nature of trading in the short term. The MACD indicator is growing, keeping a poor buy signal (the histogram is above the signal line). Stochastic shows more active growth but is quickly approaching its maximum levels, indicating that the instrument may become overbought in the ultra-short term.

Resistance levels: 97.21, 100.00, 102.57, 106.00. | Support levels: 93.34, 91.00, 88.79, 87.00.

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