With the pandemic woes back to the table, fears of depleting oil demand and scheduled jump in supplies weigh on Brent prices during early Wednesday. Additionally, chatters over antitrust lawsuits over OPEC output cuts also weigh on the black gold. Technically, the British oil benchmark’s failure to stay beyond two-month-old horizontal resistance keeps sellers hopeful. Though, a clear downside break of 200-SMA level of $65.68, as well as the confirmatory fall below the late March’s top of $65.50, becomes necessary for the quote to retest the monthly ascending support line, currently around $62.80.
On the contrary, Brent oil buyers need a successful rise beyond the $68.00 immediate key hurdle for fresh entries. Following that, the $70.00 threshold and the mid-March high near $70.50 can act as buffers before directing the bulls toward the yearly peak surrounding $72.00. Overall, oil prices are likely to witness further downside amid covid fears, OPEC supply and technical weakness.