Brent is rising pretty quick on Monday; it has completed the correction by reaching $111.
Investors are concerned again about the global oil supply shortage. The latest report published by the International Energy Agency said that it might be necessary to save about 2.7 million BPD to avoid any negative influence of the lost oil production volume.
For example, the International Energy Agency suggests introducing new speed limits to drive down energy use. One of the other suggestions implies a hybrid working mode, allowing employees to work remotely, without going to offices every day. Still, these measures won’t have any significant influence on oil prices.
Last Friday’s report from Baker Hughes showed that the Oil Rig Count in the US reduced by 3 units, down to 524. At the same time, Canada’s indicator decreased by 24 units, down to 103.
In the H4 chart, having completed the correction at 99.10, Brent is growing towards 115.70 and may later start another correction to reach 106.60. After that, the instrument may resume trading upwards to beak 124.60 and then continue growing with the target at 142.00.
From the technical point of view, this scenario is confirmed by MACD Oscillator: its signal line is rising towards 0 and may break it soon. If it happens, the line may continue growing towards new highs.
As we can see in the H1 chart, after finishing another ascending impulse at 106.50 and forming a new consolidation range around this level, Brent has broken it to the upside and may later resume trading within the uptrend with the first target at 115.70. After that, the instrument may start a new correction to return to 106.50. From the technical point of view, this idea is confirmed by the Stochastic Oscillator: after returning to 80, its signal line is expected to resume falling towards 50 and then grow to return to 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.