Brent oil accelerated strongly higher on Tuesday, bringing psychological $80 barrier in focus again (after last week’s attempt stalled at $80.10) after Saudi Arabia agreed with short-term price rise and said they are comfortable with Brent price above $80. The global oil markets remains tight, with looming US sanctions on Iran (due to go into effect on 4 November, with Iran’s crude exports already falling) maintaining concerns about supply. Bullishly aligned daily techs are still lacking momentum which could cause another failure at $80 zone, despite supportive fundamentals, as plethora of strong barriers above $80 (former highs at $80.10 and $80.48), could provide strong headwinds and delay bulls. Scenario of repeated rejection at $80 zone could keep the price within initial range between $80.10 and $77.36, while loss of $77.36 handle would risk deeper pullback and put immediate bulls on hold. Conversely, sustained break above $80.00/48 pivots would open way towards next key barrier at $81.84 (Fibo 61.8% of larger $115.68/$27.09 fall).
Res: 80.10, 80.48, 81.00, 81.84
Sup: 78.55, 77.48, 77.35, 75.87
