Brent crude (Daily)
Singapore Transportation
To spring into action as oil price falls to test crucial support
- Oil prices fell with Brent tumbling >7% towards major support level at USD98 per barrel (pbl) on falling demand concerns
- Watch the key USD98pbl support level
- Brent crude has been trading sideways from USD98pbl to USD122pbl since middle of March
- If USD98pbl fails to hold, technical price action will turn bearish and points downside towards USD84pbl
- US transport companies (e.g. airlines, cruise liners) rallied strongly last night in reaction to oil price decline while energy and O&G sub sectors were among the losers
- Expect positive price action for SIA and ComfortDelgro today as reopening optimism had been partly hampered by recent high oil price