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Brent Oil Could Continue To Soar

Published 01/28/2022, 06:59 AM
Updated 07/09/2023, 06:31 AM

Brent oil prices have come close to $90 per barrel for the first time since 2014, after the release of the Energy Information Administration (EIA) report by the US Department of Energy on Wednesday.

According to the Ministry of Energy, although commercial oil reserves increased by 2.377 million barrels in the reporting week (analysts expected them to decline by -0.728 million barrels), the total volume of oil and petroleum products reserves in the United States, including strategic reserves, fell to 1.78 billion barrels, the lowest since 2014.

In general, oil market analysts believe that energy prices will remain positive, staying above current levels, and oil prices may rise for the sixth week in a row. OPEC oil production remains below quotas as tensions between Russia, a major gas and oil producer, and Ukraine, through which large volumes of natural gas are shipped, fuel energy prices. In the event of interruptions in their supply, oil prices can accelerate their growth, even if the dollar further strengthens.

A breakdown of the local resistance level of 89.60 will lead to further price growth, and oil market analysts predict that the positive dynamics will continue against the backdrop of increased demand for energy and limited oil supplies by OPEC + countries.

The first signal for the implementation of this scenario will be a breakdown of the important short-term support level 86.73.

  • Support levels: 86.73, 85.65, 82.69, 77.10, 74.65, 72.60, 62.00
  • Resistance levels: 89.60, 90.00

Trading Recommendations

Brent: Sell Stop 87.55 Stop-Loss 89.65. Take-Profit 87.00, 86.73, 85.65, 82.69, 77.10, 74.65, 72.60, 62.00

Buy Stop 89.65. Stop Loss 87.55. Take-Profit 90.00, 91.00, 92.00, 93.00, 95.00, 99.00

Brent crude oil daily chart.

Latest comments

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