Supply disruptions and Norway Oil workers’ strike are supporting the Oil prices

Brent oil price jumped on Monday and extending the overnight price on Tuesday early Asian session as Norway oil workers prepare to strike. At the time of preparing the article Brent up by 0.20%, trading at 78.25$.

Hundreds of workers on Norwegian oil and gas offshore rigs are due to on strike on Tuesday after rejecting a proposed wage deal, a move which will likely affect the production of at least one field, Shell’s Knarr, Reuters reported.

Technical resistance zone seems to be between 78.50$-79.00$ above this 79.50$ and 80.00$ exists. The daily study RSI and the oscillator are remaining bearish. Based on these facts we believe further rise toward 79.50-80.00$ in the coming days could expect selling pressure again.

The flip side, support base firmly presented between 76.50$-76.30 fails to hold, would likely to activate the reverse thrust to 75.50-75.00$ and 73.00$. At higher time frames, we are still attentively watching the level of $ 80.00 – $ 83.00. Above this, the critical level is focused on the Fibonacci retracement of 61.8% – $ 89.60.

It is important to always keep in mind the risks involved in trading with leveraged instruments.

What is your Technical View?

Do you have a different idea? Please leave us a comment and get an answer from our professional analysts.