Such a dynamics may point to conflicting factors in the market. On the one hand, the lingering concerns over US shale production continue to weigh on prices, as well as a widespread risk aversion on the back of global political tensions. On the other hand, the greenback’s persistent weakness and high OPEC discipline play in favor of the asset. However, at this stage, these factors are just limiting the downward pressure and can’t fuel a sustained demand for Brent.
Therefore, crude prices will likely continue to struggle in a relatively tight range until fresh drivers emerge. In the short term, a break above the 20-DMA at $65.20 is needed in order to accelerate the ascend and avoid the intense selling pressure. This scenario is at risk however ahead of the upcoming Baker Hughes data which may reflect a higher number of oil rigs and send the prices lower.