Brent Oil: Downtrend to persist – Credit Suisse

Brent Crude Oil is oscillating slightly above key support at $27.10. However, strategists at Credit Suisse expect the downtrend to persist.

Key quotes

“Brent Crude has sold off extremely sharply, in line with our bearish bias, after breaching the key $27.10 support intra-week. Whilst the market has reversed back above here, we stay bearish.”

“The next support is seen at $23.05/22.56, the November 2002 low and bottom of the long term confirmed channel downtrend, where we would expect to see a concerted effort to hold.”

“Only a move back above distant $39.70 would ease the current pressure on Brent Crude oil, which is not our base case and we expect this level to cap further upside if reached.”