The Brent price is rising again. It seems like investors intend to update the highs after the correction that took place last week. On Monday, Brent is trading at $88.42.
The first and key trigger that pushes oil prices upwards is the supply shortage in the commodity market. Amid stable demand, OPEC+ is doing its utmost to agree on adding 400 thousand barrels to the daily output, but the alliance's efforts aren't enough. The supply shortage is expected to last longer than it was thought before, and this factor is pushing oil prices upwards.
Last Friday's report from Baker Hughes was relatively neutral: the Oil Rig Count in the US reduced by 1 unit, down to 491, while the Gas Rig Count added four units, up to 113. At the same time, Canada's indicator increased by 21 units.
In the H4 chart, having completed the ascending structure at $89.50 along with the correction down to $85.75, Brent has broken $87.77 (due to the gap to the upside) and may continue trading upwards with the target at $92.50.
However, if the asset falls and breaks $85.75, the instrument may continue the correction to reach $84.90 and form another ascending structure towards the above-mentioned target. From the technical point of view, this scenario is confirmed by MACD Oscillator. Its signal line moves above 0 inside the histogram area, thus indicating a further uptrend in the price chart. 
As we can see in the H1 chart, after forming a new consolidation range around $84.25 and breaking it to the upside, Brent has reached $88.90. Today, the asset may correct to test $87.25 from above and then resume trading upwards to break $88.90.
The short-term target is $90.70. From the technical point of view, this idea is confirmed by the Stochastic Oscillator: after breaking 50 to the downside, its signal line is expected to continue falling and reach 20. Later, it may resume growing to reach 80.
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.