By RoboForex Analytical Department
After five consecutive days of upward movement, Brent crude oil is now experiencing a consolidation phase, with prices retreating slightly to 81.80 USD per barrel on Tuesday. Market sentiment is being influenced by renewed concerns over global oil demand, particularly following OPEC’s downward adjustment of its demand forecasts for 2024 and 2025. This adjustment reflects weaker-than-expected economic data from China and reduced regional demand projections.
OPEC now estimates global oil demand will grow by 2.11 million barrels per day (bpd) in 2024, down from its previous forecast of 2.25 million bpd. For 2025, the projection has been revised to 1.78 million bpd from 1.85 million bpd. These revisions are mainly due to the sluggish economic indicators emerging from China, a significant driver of global oil demand.
The ongoing conflict in the Middle East keeps market participants on edge. A new round of negotiations could be scheduled for Thursday, although there remains uncertainty about whether they will occur. Market players are particularly concerned about the potential for escalated conflicts involving Israel and Iran, which could disrupt oil supplies from the region and create further volatility in oil prices.
Technical analysis of Brent crude oil
Free Reports:
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
Download Our Metatrader 4 Indicators – Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter
The technical forecast on the Brent crude shows that the price is forming a consolidation range around 78.75 USD, with a recent upward breakout continuing the growth trend towards 81.97 USD. This level serves as a local target. Upon reaching this level, a correction back to 78.75 USD may occur, followed by a potential rise towards 82.40 USD. This bullish scenario is supported by the MACD indicator, which, despite being below zero, shows a clear upward trajectory.
On the H1 chart, Brent found support at 78.44 USD and is developing a growth structure towards 81.97 USD. Having already reached a local target at 81.90 USD, a corrective move to at least 80.17 USD could follow before resuming the upward trend. The stochastic oscillator, positioned near the 20 mark, indicates potential for upward movement, aligning with the broader bullish sentiment observed on the H4 chart.
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.
- The People’s Bank of China kept key rates unchanged. Oil grows amid escalating conflict in the Middle East Sep 20, 2024
- AUD/USD Reaches New Heights as Risk Sentiment Improves Sep 20, 2024
- Brent Crude Oil Rebounds Amid Monetary Easing and Market Dynamics Sep 19, 2024
- The US Fed surprised the market with a sharp rate cut. Australia’s labor market remains resilient Sep 19, 2024
- The US Federal Reserve will begin its rate-cutting cycle today. In the UK, inflation figures were unchanged Sep 18, 2024
- USDJPY Experiences Renewed Decline as Market Adjusts Expectations Sep 18, 2024
- Countdown to Fed decision enters final hours Sep 18, 2024
- Gold (XAUUSD) Holds Near Record Highs Amid Anticipation of Fed Rate Cut Sep 17, 2024
- EUR/USD Gains as Fed Meeting Approaches Sep 16, 2024
- The US Federal Reserve may start the rate-cutting cycle with a 0.5% move. Silver reached a 2-month high Sep 16, 2024