Breaking News
Get 40% Off 0
👀 Reveal Warren Buffett's stock picks that are beating the S&P 500 by +174.3% Get 40% Off

Brent Crude Oil Faces Multiple Challenges: What's Next?

By Andrey GoilovCommoditiesNov 27, 2023 06:01AM ET
www.investing.com/analysis/brent-crude-oil-faces-multiple-challenges-whats-next-200643902
Brent Crude Oil Faces Multiple Challenges: What's Next?
By Andrey Goilov   |  Nov 27, 2023 06:01AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
LCO
+1.89%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CL
+1.98%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

The Brent crude oil market is currently navigating a complex landscape, reflected in the recent decline in prices. On Monday, the price of Brent crude fell to $79.95 per barrel, indicating a notable lack of confidence among investors in OPEC+, the coalition of oil-producing countries.
 
Several factors contribute to this downturn in the crude oil market. These include diminishing geopolitical risks in the Middle East, which have historically been a major driver of oil prices, and a lackluster performance in the U.S. drilling sector. The American drilling industry's slow pace is affecting global oil supply dynamics, further complicating the market situation.
 
Market analysts are closely monitoring the upcoming OPEC+ meeting, scheduled for November 30. This meeting is critical as key oil producers are expected to discuss and potentially agree on a new production policy for the first quarter of 2024. Earlier tensions among some OPEC+ members had sparked market reactions, suggesting uncertainty in the coalition's decisions. However, recent reports have downplayed these disagreements, indicating they may not significantly impact the group's global decision-making process.

Technical analysis of Brent Crude Oil price charts

Brent price analysis
Brent price analysis

 
The technical analysis of the Brent H4 chart reveals a significant consolidation pattern forming around the $80.50 mark. A Triangle pattern is becoming increasingly apparent in this context. Based on current trends, a rebound from the lower boundary of this pattern is possible, potentially leading to an increase to the $83.25 level. Should this level be breached, the market might experience a surge, pushing prices up to $88.20. This bullish scenario is corroborated by the Moving Average Convergence Divergence (MACD) indicator, whose signal line is hovering near zero and is oriented downwards.
 
Brent price analysis
Brent price analysis

 
In contrast, the H1 Brent chart shows a descending structure moving towards $79.30. Upon reaching this level, the market may witness a rise to $83.25, followed by a potential correction to $82.00, and then another increase to the $83.25 level. This constitutes a short-term target. Supporting this forecast is the Stochastic oscillator, with its signal line positioned below 20 and directed upwards, suggesting the possibility of new highs in the near term.

***
 
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.

Brent Crude Oil Faces Multiple Challenges: What's Next?
 

Related Articles

Phil Flynn
The Energy Report: Product Flop By Phil Flynn - Feb 29, 2024 3

Oil prices hit a three-and-a-half month high, yet the oil products flopped in hopes that refiners may be able to meet current demand. Even as gasoline demand hit a three-week high,...

Brent Crude Oil Faces Multiple Challenges: What's Next?

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email