Despite the risk-on scenario seen in the last few days, the oil price confirmed its weakness yesterday, being unable to hold gains achieved in the final part of last week and the main trend remains one of sideways drift. Uncertainty is still dominating the scenario, with investors seeing too many geopolitical risky elements unsolved and a high chance of an economic slowdown in the next future. This mix of detrimental elements is adding bearish pressure to oil.
The first support level is placed at $51, which is the low reached last week and in August and June. A fall below these levels would open space for further declines. Vice-versa the first positive signal would arrive only with a recovery and climb above last week’s high of $55.
