Brent crude sees resistance at USD 112-113 per barrel
With the absence of any significant triggers to shift crude oil out of the range in which it has been trading since September last year, prices for the commodity now seem to be approaching the high end of the current trend. This, says Ole Hansen, Head of Commodity Strategy at Saxo Bank, means that resistance is starting to appear at around the USD 112/barrel to USD 113/barrel.
Though the market did move a little higher this morning, the quantitative easing plan announced by the Bank of Japan overnight was fully in line with expectations and failed to provide extra support. Meanwhile, the end of the Algerian hostage crisis has eased geopolitical tensions. But although economic data coming out of the US and China continues to improve – indicating a strengthening global economy – Brent crude has nonetheless been unable to escape from its current range. Intraday trends to track could include any selling opportunities above current prices and up towards USD 113/barrel.
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See what Ole Hansen is also saying about gold, grains and other commodities