Brent Clings To $71 Barrier

After a limited correction on Tuesday, crude oil prices are trying to resume the rally today, with Brent struggles to firmly get back above the $71 figure a jump to fresh five-month highs around $71.30 yesterday.

The IMF cut its forecast to the lowest since the financial crisis, which stoke fears that global growth is slowing and curbed demand for riskier assets including oil. Besides, the API report showed that the US crude oil inventories increased 4 million barrels last week, which put the prices under some pressure as well.

On the other hand, the bullish catalysts remain intact for the market. And as long as the general picture remains positive, Brent will likely remain in the upper end of the current range. But should the risk sentiment continue to deteriorate in the short term, some corrective moves may come into play again. In the near term, the $71 level is the key region for traders.

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