After 13 days of level trading, Today's session suggests a further slowdown — Brent crude oil weakened earlier in the day, before moving away from its $94.74 low and recovering back to $95 per barrel.
Initial Jobless Claims data from United States will be released today at 12:30 UTC with analysts expecting a decline to 220,000. Potentially significant price fluctuations in ICE Brent crude are expected to follow.
United States Crude Oil Inventories published yesterday at 14:30 UTC came out at -3.12 million, falling short of the 367,000 projections and continuing its decline from the previous 2.59 million figure.
Amid the market gloom, United States Interest Rate came out at four, while a consensus of analysts was expecting four. United States ADP Nonfarm Employment Change (Oct) released yesterday at 12:15 UTC with a figure of 239,000, while the previous figure was 192,000.
Brent Crude Oil made an initial break below its 10 day Simple Moving Average at $95.03, a possible indication of a forthcoming negative trend. Brent crude's upper Bollinger Band® is at $97.68 which indicates a further downward move may follow. In contrast, Brent crude could begin to recover as it approaches significant support, now 38 cents away from $94.61. Dipping below could be an indication that further losses are ahead.
Overall, looking at the technical analysis landscape, it seems Brent crude is likely to start pointing downward in the short term.
In the meantime, negative performances are also seen in other Energy as Natural Gas is down to $6.03, losing 23.4 cents, after closing at $6.27 in the preceding trading session.
Looking ahead, ongoing depreciation may be prolonged as projections for United States Non Farm Payrolls are set for a continuation of decline with 200,000 while previous data was 263,000; data will be released tomorrow at 12:30 UTC. As things stand, upcoming United States Unemployment Rate data is projected to fall short of market expectations with newly published data of 3.6, following on from the preceding figure of 3.5. New data is set to be published tomorrow at 12:30 UTC.
Furthermore, United States ISM Non-Manufacturing PMI (Oct) scheduled to come out today at 14:00 UTC.
Approximately 7 months ago, Brent crude oil reached a significant high of $129.12 but has struggled to hold onto its gains and declined 25.53% since then.