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Brent extends eight-week slide

FXStreet (Mumbai) - Brent Crude prices fell, extending an eight week decline after Japan, the world’s fourth largest crude importer, unexpectedly fell into a recession during the third quarter.

Brent for January delivery traded 1.64% lower at USD 78.11/barrel at the time of writing. The hopes of a pick-up in the global economy were dealt a blow after Japan's economy unexpectedly shrank by an annualized 1.6 % in the third quarter.

Meanwhile, Crude prices also suffered another blow from the International Energy Agency, which said the oil market had entered a new era with lower Chinese economic growth and booming U.S. shale output.

All eyes are now on the Organization of the Petroleum Exporting Countries (OPEC) meeting scheduled on Nov. 27. Over the weekend, Iran’s oil minister accused some OPEC countries of making excuses to avoid stabilizing prices by cutting output. Moreover, Saudi officials have insisted that the issue of prices should be left to market forces.

Crude prices may extend fall today, if the industrial production in the US shows signs of contraction.

Brent Crude Technical levels

Brent Crude has an immediate support located at 77.67, under which prices can test 77.29 levels. Meanwhile, resistance is seen at 78.53 and 79.14 levels.

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