Brent oil: Off three-week highs, but remains above key support

Brent oil has backed off from three weeks highs above $61.00 hit on Wednesday.
Prices are holding above the 50-day average support.
Upside could be capped by a slowdown in the major oil-importing nations.

Omkar Godbole FXStreet Contributor

Brent Oil has pulled back from three-week highs registered on Wednesday but is holding well above the 50-day moving average (MA) at $60.53.

The black gold rallied by 2.55% on Wednesday, the biggest single-day gain since Sept. 4, on a surprise drop in the US crude inventories.

The US Energy Information Administration reported that oil inventories fell by 1.7 million barrels for the week ended Oct. 18 – the first drop in six weeks. Further, oil supplies from the US Strategic Petroleum Reserve fell by 1 million barrels for the week ended Oct. 18.

Markets were expecting an increase in inventories by 4.7 million barrels.

The better-than-expected data pushed oil higher to $61.28, a level last seen on Sept. 30. As of writing, a barrel of Brent is changing hands at $60.74.

Looking forward, Brent could rise to $61.68 (100-day MA) if the ongoing pullback reverses from the 50-day MA support. That said, observers believe the upside is limited, as big oil importers like China, India, South Korea, and Japan are witnessing an economic slowdown.

Technical levels

Brent Oil

Overview
Today last price	60.85
Today Daily Change	-0.33
Today Daily Change %	-0.54
Today daily open	61.18

Trends
Daily SMA20	59.8
Daily SMA50	60.72
Daily SMA100	61.72
Daily SMA200	64.44

Levels
Previous Daily High	61.42
Previous Daily Low	58.98
Previous Weekly High	60.59
Previous Weekly Low	58.37
Previous Monthly High	69.77
Previous Monthly Low	57.57
Daily Fibonacci 38.2%	60.49
Daily Fibonacci 61.8%	59.91
Daily Pivot Point S1	59.63
Daily Pivot Point S2	58.09
Daily Pivot Point S3	57.19
Daily Pivot Point R1	62.07
Daily Pivot Point R2	62.97
Daily Pivot Point R3	64.51

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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