Crude Oil Dropped Significantly

Brent barrel is trying to stabilise at the beginning of the new week of June and is balancing near $113.

The key for sales became fears of a recession in the US. After the Federal Reserve system lifted the rate abruptly, investors got worried. Simultaneously, the Fed worsened the expectations from the US GDP for 2022. Now it counts on the growth of only 1.7% instead of 2.8% in March.

Expectations of a slow-down in the GDP growth made market players think about a decline in the demand for energy carriers and oil, which deteriorated Brent prices.

According to Baker Hughes, the number of active oil drilling rigs is growing again. In the US, the indicator grew by 4 rigs over a week, reaching 584 units, in Canada – by 10 units (to 104 rigs).

On H4, Brent has reached a local goal of growth – 126.00. Today the market has corrected to 112.35. We expect a new wave of growth to begin at 130.00. After this level is reached, the price might develop a link of correction to 126.00, followed by growth to 145.00. Technically, this scenario is confirmed by the MACD. Its signal line is at the lows under zero and is preparing to leave the histogram area, which suggests further growth on the price chart.



On H1, Brent has completed a correction to 112.35. Currently, the price is forming a consolidation range above this level. We expect an escape upwards and the beginning of a new growing wave to 121.61. Technically, this scenario is confirmed by the Stochastic oscillator. Its signal line is forming a new structure of growth. Today the level of 50 is being broken away, which suggests further growth 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.