The crude oil market remains turbulent. On Monday, a Brent barrel again got under pressure and fell to 72.30 USD.
Over last week, crude oil quotes lost almost 12%, which makes 10 USD, a more than significant decline. Problems in the US and European banking sectors triggered the sales. Fears about new increases in the interest rate by the CBs made investors flee from risks. The growth of the rates could worsen the banking crisis, which is not a thing that many would enjoy.
The fundamental background for crude oil has not changed much. At the OPEC+ level, they think that black gold prices will stabilize as soon as the financial shock is over. Current crude oil prices entirely agree with the earlier parameters the US administration set for filling up strategic reserves. This driver could support the quotes.
On the H4 chart of Brent, the level of 78.38 has broken, and a wave of decline to 70.30 continues. The target is local. After it is reached, a correction to 78.30 is not excluded. Then the price might drop to 67.87. Technically, this scenario is confirmed by the MACD. Its signal line is below zero in the histogram area, which suggests a decline to new lows.
On H1, Brent is developing a structure of a declining wave towards 70.27. The target is local. After it is reached, a link of growth to 78.28 might follow. Technically, this scenario is confirmed by the Stochastic oscillator. Its signal line is under 50 and directed upwards, right to 20.
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.