ICE Brent crude fell to a new low at $78.71 today, its lowest value in 11 months; yesterday ended at $82.68.
Brent crude oil is currently trading at $79 following the release of EIA Short-Term Energy Outlook data from the United States.
While price action maintains a negative bias, United States ISM Non-Manufacturing PMI (Nov) came out at 56.5, while a consensus of analysts was expecting 53.3. United States Trade Balance (Oct) released today at 13:30 UTC with a figure of -78.2 billion, while the previous figure was -74.1 billion. United States Exports is released with a new figure of 256.6 billion, this is down from preceding data of 258.5 billion.
Brent Crude Oil pushed below the $80.65 support level and extended $1.67 beyond it. The Commodity Channel Index (CCI) indicator is below -100, meaning the market price is unusually low and below its rolling moving average. Technical analysis indicates that a new, strong downtrend could be forthcoming with short positions favored. A crossing of the lower Bollinger Band® at $79.23 suggests further losses may follow for Brent crude oil. On the other hand, note that the RSI is a momentum oscillator that measures changing price movements on a scale of 0-100. In ICE Brent crude's case, the index has fallen below 30, signalling that the asset is oversold.
In the short term, Brent crude is expected to maintain its recent downtrend and continue spiralling lower.
In the meantime, negative performances are also seen in other Energy as Crude Oil is trading around $73.82 (down $3.11). Heating Oil slumps 3.21% to trade around $2.9. Natural Gas is down to $5.48, losing 10 cents, after closing at $5.58 in the preceding trading session.
Moreover, United States Crude Oil Inventories is projected to outperform its last figure with -3.88 million. It previously stood at -12.58 million; data will be released tomorrow at 15:30 UTC.
The commodity has been trending lower for about a month. Brent crude has shed 31.89% over the past six months.