Oil Sellers Set to Test $90 Support

On Thursday, August 4, according to the results of the day, a barrel of Brent fell in price by 3.91%, to $93.32. The decline in quotes is more caused by a technical factor than a fundamental one. The fall in prices accelerated after buyers surrendered the $100 per barrel level. Key support is at $90. If the fall slows down near the support, then with a high probability we should expect a rebound from it. If buyers begin to actively close long positions in the futures market, the next support will be the level of $86.

On Friday, August 5, at auction in Asia, Brent crude is traded at $94.38 (+1.14%). The focus of attention of traders is directed to the report on the US labor market for July. The data is important to the US Federal Reserve and could influence monetary policy. The challenge for the Fed is to slow record inflation without triggering a recession. Although the US GDP data for the 1st and 2nd quarters has already recorded a technical recession. Yellen and Powell refuse to acknowledge her. If the Non-Farm Payrolls report does not disappoint investors, then oil can expect a rebound from the current low of $93.20 to the $98.50 area.