OUTLOOK for BRENTOIL. Middleterm
Technical analysis.
On the 4 hour chart of BRENT crude you can see the old figure of HEAD SHOULDERS. At the same time, you can see the formation of the figure DOUBLE BOTTOM. Given that the sellers failed to break through the KEY resistance level in the area of 72.10, the price rebounded up and fixed at the level of 75. The option of moving up looks more preferable in the near future. However, the pressure from the fundamental news limits the growth to 76. Perhaps a short-term movement to 76.8, followed by a correction back to 75.8-76.10. By the way, if you look at the longer timeframes, you can see that the price of Brent oil likes to stay at the price levels in the areas of X.10, x,30, X. 80 and X. 50 (where x is a whole part of the cost).
Fundamental analysis.
Over the past week, many have had questions about the collapse of prices on Wednesday, despite the sharp increase in oil reserves in the US. If you follow the news closely, you can see that this situation was the result of several factors - first, the output of the OPEC report with the forecast on supply and demand, secondly, the resumption of oil supplies from Libya, and thirdly, the situation in Canada is somehow solved. That is, the factors limiting the supply of oil, which supported the high cost of oil, will change. However, in reality, we can consider the fall in value to one of the key supports in the area of $ 73 as a good correction down. The situation with the news that oil supplies from Canada and Libya will resume in the next month, no more than news. In fact, the solution to this issue may last until the autumn. Despite the statement about the possible increase in production in Saudi Arabia and Russia, it may not be so fast.
At the same time, the world's oil storage capacity is limited. The growth of consumption is growing, with the production is also a question we decide, but with the infrastructure there may be problems.
Therefore, in the near future, we are waiting for a good volatility of oil prices on the news background, but still with the dynamics of the growing trend.
On the 4 hour chart of BRENT crude you can see the old figure of HEAD SHOULDERS. At the same time, you can see the formation of the figure DOUBLE BOTTOM. Given that the sellers failed to break through the KEY resistance level in the area of 72.10, the price rebounded up and fixed at the level of 75. The option of moving up looks more preferable in the near future. However, the pressure from the fundamental news limits the growth to 76. Perhaps a short-term movement to 76.8, followed by a correction back to 75.8-76.10. By the way, if you look at the longer timeframes, you can see that the price of Brent oil likes to stay at the price levels in the areas of X.10, x,30, X. 80 and X. 50 (where x is a whole part of the cost).
Fundamental analysis.
Over the past week, many have had questions about the collapse of prices on Wednesday, despite the sharp increase in oil reserves in the US. If you follow the news closely, you can see that this situation was the result of several factors - first, the output of the OPEC report with the forecast on supply and demand, secondly, the resumption of oil supplies from Libya, and thirdly, the situation in Canada is somehow solved. That is, the factors limiting the supply of oil, which supported the high cost of oil, will change. However, in reality, we can consider the fall in value to one of the key supports in the area of $ 73 as a good correction down. The situation with the news that oil supplies from Canada and Libya will resume in the next month, no more than news. In fact, the solution to this issue may last until the autumn. Despite the statement about the possible increase in production in Saudi Arabia and Russia, it may not be so fast.
At the same time, the world's oil storage capacity is limited. The growth of consumption is growing, with the production is also a question we decide, but with the infrastructure there may be problems.
Therefore, in the near future, we are waiting for a good volatility of oil prices on the news background, but still with the dynamics of the growing trend.
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