Brent continues to rise due to the fact that investors expect a reduction in global supplies. The reopening of the Chinese economy makes crude oil consumption positive this year, with severe cases of Covid falling by 70%. The level of oil reserves in the US turned out to be lower than expected, which also supports the quotes. The data showed an increase of only 0.533 million barrels against expectations of 1 million barrels. Last month, oil inventories hit their highest level since mid-2021. OPEC is likely to maintain the current level of oil production until the next meeting. Investors also tried to understand where Russian oil could go, because next month the next Western sanctions and price restrictions on oil products from Russia should come into force, which could push the price of oil even higher.
Brent Crude Oil Forecast January 27, 2023
Quotes of Brent crude oil continue to move within the framework of growth and a downward channel. At the time of publication of the forecast, the price of Brent oil is $86.58 per barrel. Moving averages indicate a short-term bearish trend in oil. Prices have broken through the area between the signal lines up, which indicates pressure from buyers of Black Gold and a potential continuation of the growth in the value of the asset already from current levels. At the moment, we should expect an attempt to develop a bearish correction and a test of the support level near the area of 83.05 dollars per barrel. Further, a rebound upwards and continued growth of the oil rate to the area above the level of 93.85.
An additional signal in favor of the growth of quotations and prices for Brent oil will be a test of the support line on the relative strength index (RSI). The second signal will be a rebound from the upper border of the descending channel. Cancellation of the option of raising oil prices will be a fall and a breakdown of the level of 81.45 dollars per barrel. This will indicate a breakdown of the support area and a continued fall in BRENT quotes to the area below the level of 70.65. Confirmation of the growth of quotations will be the breakdown of the resistance area and the closing of prices for Brent above the level of 92.05, which will indicate the breakdown of the upper limit of the bullish channel.
Brent Crude Oil Forecast January 27, 2023 suggests an attempt to test the support level near the area of 83.05. Further, the continuation of the growth of oil with a target above the level of 93.85. In favor of the rise of the asset, a test of the trend line on the relative strength index (RSI) will come out. Cancellation of the option of growth in the price of Brent oil will be a fall and a breakdown of the level of 81.45. This will indicate a continued fall in quotes to the area below the level of 70.65.
