Brent continues to rebound as it nears major technical resistance

The rebound in oil prices from an early European morning low extended all the way into the NYMEX settlement and beyond. The low seen on March Brent crude was at $74.79 and the rise that followed saw it lift all the way back above $78 and towards $78.50 right on the 4pm London FX fix. March Brent later settled $2.36 higher on the NYMEX, at $78.25. It has lifted further this morning, rising to $78.91 so far. The next and important level on the radar is surely now the 200 day moving average. That is in place right now at $79.80. At the same time the 50 day moving average is close to crossing below this and currently in place at $80.03. In truth it is going to require a significant increase in the price today in order to avoid that crossing. The situation in the Red Sea is still a major concern for the oil markets and one that simply cannot be ignored. In that sense the price action will be very much dependent on what, if any further news emerges from that area today. Brent for March delivery is currently trading at $78.72