 Hello, welcome to this week's CMC Markets Commodity Snapshot with myself Jasper Lawler. We're going to be looking at Brent's Crude Oil. Now the price topped out around May and has been in a steep downtrend since. Just hit around $50 per barrel, which is a level a lot of people look at, so we just want to try and determine whether this downtrend is likely to continue or whether we may be in for a bit of a correction. Now there's a few things to keep an eye on with Brent Crude. I would argue a couple of the main reasons why this downtrend has taken place and some reasons to think it may continue is just the general supply-demand picture of actual Brent Crude Oil, Middle Eastern countries, particularly OPEC, are producing record amounts of oil and it does just seem that the oil produced in the US has not massively expanded but just hasn't really contracted, which many people thought it might have done given the decrease in the price of oil in the past year. Now it's been a steep downtrend and it's never a good idea to catch a falling knife. Part of the reason for the downtrend is the supply dynamics that we mentioned but also just that there are rising expectations that the Federal Reserve will hike interest rates for the first time in many years in September and that's been supporting the dollar, obviously because all commodities are generally priced in dollars, these commodity prices have been heading down. Now that has slightly shifted in the past few days. There's been some disruption in the Chinese currency market and the Chinese stock market. A few world headwinds which may be caused the Fed to delay hiking interest rates at least until perhaps December and so for that reason there's a chance that maybe the dollar is topped out for now. We're seeing dolly yen around 125, the pound and the euro both nearing the tops of recent trading ranges potentially going to break out so perhaps some reason to think the dollar is topping out and so this could be supportive of oil prices. Now taking a look at the chart, what we've got in front of us is the daily candlestick chart for Brent Crude Oil. Just got the one moving average on there and you can see that's the 200-day moving average so showing us alongside the steep decline in the candlesticks that we're in a downtrend what we've also had is a fairly consistent downtrend on the RSI beneath the price chart that has just recently been broken so that alongside the $50 per hour level alongside what you'll see at the far left-hand side of the chart was a bit of a consolidation which took place in January. Couple of reasons there to suggest that maybe this isn't going to be just a correction maybe there is going to be a bit of a longer, bigger bounce here in Crude Oil. What we do have to keep in mind though is that this shaded area above you see in the chart is a sort of supply area that a lot of people will be looking at. It's been supporting prices for a while, we've got a break through there so it's entirely possible we've just got a little bounce up to that level before declining again perhaps even to new multi-year lows. So that's it for this week's CMC Markets Commodity Snapshot. What we're really looking at here is expectations for the Federal Reserve, signs that maybe the dollar has topped out and just signs of a breakout out of this recent $50 per hour type zone in Brent just to give us an idea that maybe we put in a short-term bottom and there's a chance for a pop higher in Brent Crude