Brent Corrects, Demand Destruction Fears Emerge
Brent weakened as the market began to reduce the supply risk premium when there were signs of supply intervention (talk about/action to release strategic reserves) and hopes that logistics disruptions would not worsen further than the worst-case scenario. In headline-driven conditions, a slight improvement in the perception of shipping safety or the potential reopening of export routes could trigger profit-taking after a rally, causing prices to fall even though tensions have not yet subsided.
Additional pressure comes from the demand side and market positioning. The previous price spike raised concerns of "demand destruction" (consumption adjusting due to high prices) and increased the risk of a slowdown, so physical buyers tended to hold back. At the same time, high volatility encourages deleveraging and adjustments in speculative positions; when the dollar strengthens or risk sentiment worsens, commodities are also more susceptible to corrections. (alg)
The oil price at the time of this analysis is $97.72
- Buy if the price moves below $97.87
- Sell if the price moves below $97.40
Resistance 2: $98.50
Resistance 1: $98.03
Support 1: $97.09
Support 2: $96.62
Disclaimer:
This article is analytical in nature and is not a definitive reference. Please consider the influence of fundamental and technical developments on trading before making any investment decisions.
Source: Newsmaker.id
