Oil price rises on renewed concerns about failure of US-Iran talks but remains below psychological $100 barrier

Brent oil price bounced from 3 ½ week low on Wednesday on renewed worries of stall of US-Iran talks which offsets positive news of recovering supplies from the Middle East (Goldman Sachs latest report says that oil exports doubled in September and reached 2025 average).

Brent December contract (front month) peaked near $99 per barrel, compared to November contract ($103.15) showing the widest gap between two benchmarks in four months (driven by expectations of US ban on diesel exports that would result in oversupply and ease pressure.

The price holds below $100 for the second consecutive day, which adds to developing negative signal from strengthening bearish momentum on daily chart / Tuesday’s formation of 10/20DMA bear cross that keeps the downside vulnerable.

Potential formation of bullish engulfing pattern today may provide some counterweight, but with lift above $100 needed to validate signal.

Brent is on track for the third consecutive monthly gain which contributes to overall bullish picture, although initial warning from long upper shadow on monthly candle should be considered.

Res: 100.00; 100.65; 101.53; 102.30
Sup: 95.10; 93.94; 93.50; 92.00