The Brent Crude Oil Futures (NYMEX: BB) have declined 1.75% week-to-date, undoing all the gains from the prior week. Traders shifted their attention to safe haven assets at the expense of risk assets, as the Greenback was boosted by positive developments in the U.S. Labour Market last week.  

Bets on a Fed rate hike surged to over 60%, moving three times higher than a month ago as traders viewed the resilient labour market as a likely reason for the Fed to hike once again. This week, price action will be determined by crucial data from the U.S. economy, which traders will likely await before committing to any positions.  

Técnicos 

The Brent Crude Oil Futures have seen price action move in a narrower range after selling off, suggesting that the market is consolidating. The support and resistance levels were established at the $68.21 and $80.29 per barrel (BLL) levels, respectively. With the price consolidating, a rising wedge pattern formed with bullish and bearish momentum confined to the pattern.  

A breakout to either side of the consolidation pattern could indicate the end of the supply and demand balance, with a move higher or lower imminent. A breakout to the pattern’s upside on high volumes could prompt a move higher. Bullish traders will likely look to the $80.29 BLL level as a potential target.  

Alternatively, a breakdown below the pattern on high volumes could signal that bearish pressure has proliferated and will likely leave the Brent Crude Oil Futures exposed to the $68.21 BLL level.  

Resumen  

In a Qatar Economic Forum organised by Bloomberg, Saudi Arabia’s Energy Minister hinted that crude oil short sellers could feel the pinch if they continued to sell off. If this is a sign of a potential output cut by OPEC+, the Brent Crude Oil Futures could be supported in the medium to long term, given that the Worlds Biggest economy is not cornered into raising rates, which could squeeze the oil demand.  

Fuentes: Reuters, TradingView