Brent Crude Oil Price Update – Weak Jobs Report Should Weigh on Prices
International-benchmark Brent crude oil futures are trading lower on Friday as demand concerns continued to outweigh worries over escalating tensions between the United States and Iran. However, prices remain underpinned on the thought that military activity between the U.S. and the rogue nation could lead to a supply disruption. The catalysts driving demand concerns are rising expectations of a global economic slowdown or even a recession.
At 07:17 GMT, September Brent crude oil futures are trading $63.11, down $0.71 or -1.11%.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart, however, momentum is trending lower. A trade through $66.74 will signal a resumption of the uptrend. A move through $59.39 will change the main trend to down with $58.47 the next target.
The minor trend is down. This shifted momentum to the downside. A trade through $62.07 will indicate the selling pressure is getting stronger.
The intermediate range is $58.47 to $66.74. Its retracement zone at $62.61 to $61.63. It stopped the selling on Wednesday at $62.07.
On the upside, potential resistance targets include 50% levels at $64.41, $65.04 and $65.91.
Daily Swing Chart Technical Forecast
September Brent crude oil futures are currently trading between a pair of retracement zone. This tends to indicate investor indecision. Like we wrote before, the market is being underpinned by supply worries and capped by demand concerns. This is preventing traders from committing too much to either side.
Bullish Scenario
If supply concerns become the key issue then look for a rally to extend into $64.41, followed by $65.04.
Bearish Scenario
If demand worries move to the forefront then prices are likely to retreat into $62.61, $62.07 and $61.63.
Overview
The U.S. Non-Farm Payrolls report could move the market today. If it points toward a weakening labor market then this will raise the chances of a global economic slowdown. This should pressure prices because of increased demand concerns.
This article was originally posted on FX Empire
