Brent Crude Uncertain As Supply Picture Mixed
The recent wildfires have cut Canada’s oil output by more than 1 million barrels per day, reducing the global oil supply. However, US crude inventories to be released tomorrow, are forecast to indicate a growing surplus. This supply imbalance continues to weigh on the commodity. Earlier today the Chinese CPI registered a positive reading, indicating that the second economy may be recovering, boosting the demand for oil. On the hourly chart, Brent is moving in a narrow range after hitting the support at 43.54. The RSI (14) has moved out of the oversold zone and stands at 35.8870, showing that the bear is still dominant. The price is anticipated to move sideways for a while and then tumbling down.
Sell at 43.81, Stop loss at 44.14, Take profit at 43.39