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Brent slides below October 6 lows at $82.20

Yesterday afternoon ahead of the European close, oil prices continued to fall, and as was expected and warned on here many times in recent days, the price of Brent crude fell below the October 6 low, at $82.20. The price of January Brent later settled $3.57 lower on the NYMEX exchange, at $81.61. It then fell to as low as $81.26 after the wider US market close. It did then rebound at the start of the Asian session today, rising to $81.96, but it has fallen back since, perhaps pushed lower by news wire reports, that apparently Saudi Arabia is to reconvene normalisation talks with Israel. Looking at the chart, the next support level could be the August 24 low, at $81.02. If that does not cap the downside, the next support after $80 would be a correction level, at $78.53. In the meantime, I am sure that both Russia and Saudi Arabia are looking at the same charts as me and I would not rule out some further rhetoric from either one, regarding the prospect of additional output cuts. We shall just have to see on that. Meanwhile, Brent crude for January delivery is currently trading at $81.36

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