Venezuela declared on Monday a “state of alarm” after a five-day power blackout. The deepened political and economic turmoil has crippled the country’s oil exports. With Venezuela, world’s largest oil reserves out of action, and cut policies from OPEC and Russia, the oil price has had a strong support this year. However, the medium-term outlook will very much depend on how global demand picks up.
On the technical side, the Brent crude is rallying towards the February high of 67.70. 68.30 will be a key resistance ahead. In case of a pullback, 66.45 is the immediate support level to monitor.
The sentiment-price correlation chart shows the sentiment rising back to the neutral line. Daily news sentiment is moving higher and in 60% of the last 10 occurrences price has risen within 2 days.