Brent Crude Oil Price Update – Sellers in Control after Norwegian Oil Firms Avoid Strike

International-benchmark Brent crude oil futures are edging lower early Monday after Norwegian oil firms and employees agreed in principle on a new wage deal, avoiding for now a strike at nine fields that could have hit the country’s petroleum output, employers and unions said on Sunday.

The move eased supply concerns, encouraging some bullish speculators to trim positions bought last week in anticipation of a strike.

At 02:19 GMT, August Brent crude oil futures are trading $119.79, down $2.22 or -1.82%.

Prices are also being pressured by a flare-up in COVID-19 cases in Beijing that weighed on demand hopes. Bullish traders are also worried about a stronger dollar driving down demand by foreign buyers for the dollar-denominated asset. Finally, there are new concerns over a possible recession if the Fed is forced to raise rates more aggressively.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through $124.41 will signal a resumption of the uptrend. A move through $103.89 will change the main trend to down.

The minor trend is also up. A trade through $118.56 will change the minor trend to down. This will shift momentum to the downside.

The nearest resistance is a minor pivot at $121.49. The nearest support is a minor pivot at $118.45. This is also the trigger point for a possible acceleration into the short-term retracement zone at $114.15 to $111.73.

Daily Swing Chart Technical Forecast

Trader reaction to the minor pivot at $121.49 is likely to be determine the direction of the August Brent crude oil market on Monday. .

Bearish Scenario

A sustained move under $121.49 will signal the presence of sellers. It this move creates enough downside momentum then look for the selling to possibly extend into the minor bottom at $118.56, followed by another minor pivot at $118.45. This is a potential trigger point for an acceleration to the downside with $114.15 to $111.73 the next key target area.

Bullish Scenario

A sustained move over $121.40 will indicate the presence of buyers. If this move creates enough upside momentum then look for a potential surge into the main top at $124.41. Taking out this level will indicate the buying is getting stronger with the March 8 June futures contract high at $127.99 the next key target price.