Brent Crude Oil Price Update – Strengthens Over $66.00, Weakens Under $64.91

International-benchmark Brent crude oil futures are inching lower on Wednesday but remain close to a six-session high reached the previous day. Prices are being capped by concerns over lower demand amid soaring COVID-19 in India. A bigger-than-expected build in U.S. crude stockpiles is also weighing on prices, while OPEC+’s confidence in a solid recovery in global fuel demand is underpinning the market.

At 02:36 GMT, July Brent crude oil futures are trading $65.68, down $0.19 or -0.29%.

According to the American Petroleum Institute (API), crude stocks rose by 4.319 million barrels, which was a much bigger build than analysts in a Reuters poll had estimated.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, but momentum is trending higher. A trade through $67.40 will change the main trend to down. A move through $60.92 will signal a resumption of the downtrend.

The minor trend is up. This is controlling the momentum. A trade through $63.93 will change the minor trend to down.

The short-term range is $69.54 to $60.28. The market is currently testing its retracement zone at $64.91 to $66.00. Trader reaction to this zone could set the tone for the rest of the week.

The minor range is $60.92 to $67.40. Its retracement zone at $64.16 to $63.40 is support. This zone stopped the selling at $63.93 on Monday.

The main range is $53.93 to $69.54. Its retracement zone at $61.74 to $59.89 is major support. This zone is controlling the near-term direction of the market.

Daily Swing Chart Technical Forecast

The direction of the July Brent crude oil market on Wednesday is likely to be determined by trader reaction to the short-term Fibonacci level at $66.00.

Bullish Scenario

A sustained move over $66.00 will indicate the presence of buyers. If this can create enough upside momentum then look for the market to surge into the main top at $67.40.

Not only will the main trend change to up on a trade through $67.40, but the move could trigger an acceleration to the upside with $68.66 the next likely upside target.

Bearish Scenario

A sustained move under $66.00 will signal the presence of sellers. This could lead to a labored break with potential downside targets $64.91, $64.16 and $63.40.

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