📖 Your Q2 Earnings Guide: Discover the Stocks ProPicks AI Highlights to Jump Post-EarningsRead more

Brent Oil Rises Steadily, Reaching $84 Amid Geopolitical Tensions

Published 01/29/2024, 09:13 AM
Updated 02/15/2024, 03:13 AM

Brent crude oil has recently marked a significant milestone, reaching $84.00 per barrel on the last Monday of January. This ascent, taking over a month, indicates a gradual but steady increase in oil prices. However, there's an emerging sentiment that this growth momentum might be nearing its peak.

The current upward trajectory in Brent prices is primarily driven by two factors: geopolitical tensions in the Red Sea and the broader Middle East, and a notable reduction in crude oil reserves in the United States. These elements are contributing to a bullish market, with investors focusing on potential supply shortages and the ongoing geopolitical landscape.

Brent Technical Analysis

In the H4 chart, Brent has formed a growth wave at 81.55, with a consolidation range now evident around this level. A potential correction to 81.55, followed by an increase to 86.22, is in view. This prediction is supported by the MACD indicator, with its signal line positioned above zero and pointing upwards.

Brent price chart

On the H1 chart, Brent has broadened its consolidation range around 84.05. A new consolidation phase is forming below this mark today. An upward breakout could set the stage for a rise to 86.04, while a downward breakout might lead to a correction to 81.60, before resuming the upward trend towards 86.04. The Stochastic oscillator suggests a potential rebound from 50, with an anticipated rise to 80, lending support to this analysis.

Brent price chart

By RoboForex Analytical Department

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.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.