🎈 Up Big Today: Find today's biggest gainers (some over 50%!) with our free screenerTry Stock Screener

Brent Crude Oil: Rebound Likely as OPEC+ Delays Production Increase

Published 11/04/2024, 05:09 AM
LCO
-

Brent crude oil prices climbed above USD $74 per barrel following OPEC+'s announcement to delay its production increase originally scheduled for December. The decision marks the second postponement by OPEC+ amid persistent global economic challenges and aims to avoid potential market oversupply.
 
Demand prospects remain subdued with Europe's slow economic recovery and Asia's lacklustre performance, particularly in China despite recent stimulus efforts. Additionally, tensions in the Middle East, particularly Iran's continued threats against Israel, are providing strong support to oil prices, with potential escalations anticipated post-US presidential elections on 5 November.
 
Concerns that regional oil production facilities might be targeted in these attacks contribute to fears of disrupted supply, further buoying oil prices. Meanwhile, temporary weakness in the US dollar also increases oil prices.

Technical analysis of Brent

Brent crude oil prices have rebounded from a recent low of USD $70.55 and are upward towards USD $76.16. The market is consolidating around USD $73.22, with a potential breakout that could lead to the USD $76.16 level. Once this target is achieved, a pullback to USD $73.22 could occur before further gains towards USD $79.20 are pursued. The bullish scenario is supported by MACD indicators suggesting upward momentum.
 
Brent price analysis

  
Following a correction to USD $73.22, Brent is poised to ascend to USD $74.90. A successful breach of this level could pave the way to 76.16. The stochastic oscillator's position above USD $50, pointing upwards towards USD $80, corroborates this potential upward movement.
 
Brent price analysis


By RoboForex Analytical Department
 
Disclaimer
Any forecasts contained herein are based on the author's 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.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.