The commodities market is currently experiencing a consolidation phase following a recovery. The price of a barrel of Brent crude oil is holding steady at around 84.40 USD as of Monday.
The driving force behind the oil sector remains the anticipation of a fuel supply deficit in the latter part of the year, a situation that is unfolding at present.
Several fundamental factors are contributing to the growth of fuel prices, including news of a fire incident at a refinery in Louisiana and the latest rig count statistics provided by Baker Hughes.
Based on the most recent data, drilling activity in the US is on the decline, with the count of oil rigs decreasing by 8 units to a total of 512 units.
Technical Analysis of Brent Crude Oil
On the H4 chart, Brent crude oil has completed a correction to 81.66, followed by a growth impulse to 84.39. The market is expected to see further growth to 84.67 today, potentially leading to the formation of a consolidation range around that level. A breakout to the upside could result in the continuation of the trend to 87.24, with the possibility of extending to 87.78 as the first target. This technical scenario is supported by the MACD indicator, which has its signal line pointing upwards and breaking the zero mark. This suggests the indicator could reach new highs.
On the H1 chart, Brent crude oil is experiencing a growth impulse to 84.70, with a narrow consolidation range expected to form around it today. If the price breaks out of this range to the upside, it could continue the wave of growth to 87.24, serving as a local target. This scenario is also confirmed by the Stochastic oscillator, as its signal line has rebounded from the 20 mark and is growing towards 50. A breakout above this level could sustain the rise 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.
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Brent Crude Oil Undergoing Correction Phase in Commodities Market
Published 28/08/2023, 14:24
Brent Crude Oil Undergoing Correction Phase in Commodities Market
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