oil is starting a new november weak with a decline brent is trading at 8127 and looking rather weak so far the latest statistics from baker hughes showed that the oil rig count added 4 units over the week and now equals 454 it’s a pretty bearish signal – the drilling activity in the us is accelerating which may result in higher output hence an excessive supply the latest report from the united states department of energy says that the oil extraction in the fourth quarter of 2021 will add 03 million bpdб while the total daily output will reach 116 million bpd if everything goes as planned the doe will adjust its forecast once again in december this week the international energy agency is scheduled to publish its forecasts on the supply and demand – oil investors are ready to respond in the h4 chart after rebounding from 8585 brent is still falling towards 7900 and may later start a new correction to test 8285 from below after that the asset may form a new descending structure to reach 7755 and then start another growth with the target at 9000 from the technical point of view this scenario is confirmed by macd oscillator its signal line is moving below 0 within the histogram area which implies a descending wave on the price chart after this wave is over the line is expected to grow towards 0 as we can see in the h1 chart after forming a new consolidation range around 8282 brent has expanded it to the downside in fact this range should be considered as a downside continuation pattern possibly the asset may reach 7963 and then start a new correction to return to 8282 later the market may resume trading downwards with the shortterm target at 7900 from the technical point of view this idea is confirmed by the stochastic oscillator its signal line is moving below 20 which implies a further downtrend on the price chart after the price reaches the abovementioned shortterm target the line may resume growing towards 50 any forecasts contained herein are based on the authors particular opinion this analysis may not be treated as trading advice roboforex bears no responsibility for trading results based on trading recommendations and reviews contained herein