Crude oil prices struggle to keep the bullish momentum after three days of gains. Brent has encountered the 100-DMA which serves as the immediate local resistance around $61.50. The sentiment in the market looks cautiously positive, with the effect of US inventory decline gas faded already and economic growth worries continue to weigh. Today, economists in a Reuters poll said a steeper decline in global economic growth remains more likely than a synchronized recovery.
On the other hand, the prospect of another round of production cuts in December and the expectations of the Federal Reserve rate cut next week are providing the market with some support now. However, this is not enough to fuel a more sustained rally, as uncertainty around Brexit and US-China trade talks persists.
Technically, Brent remains above the previous bearish channel but gains this week failed to bring a meaningful breakout despite the prices have settled above the $60 handle. Also, demand worries continue to cap the upside momentum in the market. In the short term, the futures need to hold above the $61 figure as a break below this threshold will bring $60 back in focus.