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Brent crude finds a base below $80 for the time being

Since my last update here on Brent crude, the price of the January contract did fall further and took out $80. The low seen yesterday after the European close was at $79.20. (The noted corrective support at $78.53 has remained intact of course). There was a rebound of sorts into the NYMEX settlement, but Brent for January settlement still ended that session, $2.07 lower, at $79.54. It has bounced more so far today though. The high seen has been set a short while ago at $80.43. On the topside, that previous breakdown level at $82.20 (October 6 low) remains a hurdle though. The lack of Middle East contagion is what has sparked this more than $13 drop from the previous highs and all the while that dynamic remains unchanged, the price could remain under pressure. There will be bounces though, like what we have seen this morning. However, at some point value hunters on the downside may well return. The question right now is how much lower before that really kicks in. We should not forget the supply side too and that could be altered at any moment, if Russia or Saudi Arabia decide to restrict supply again. January Brent is just now trading at $80.25

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