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Brent Oil Rises Steadily, Reaching $84 Amid Geopolitical Tensions

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

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