Oil prices remain near a two-month high. This was due to a significant reduction in US oil reserves. The data was presented last week, along with an optimistic outlook for US fuel demand. The US Energy Information Administration (EIA) reported a decrease in crude oil inventories of 12.2 million barrels, which significantly exceeded expectations for a decrease of 680 thousand barrels. Additionally, weaker U.S. economic data has fueled expectations that the Federal Reserve will cut interest rates in September, bolstering confidence in economic growth and energy consumption.
Brent Forecast for July 5, 2024
Brent oil quotes continue to move as part of the development of growth and a bullish channel. At the time of publication of the forecast, the price of Brent oil is $86.71 per barrel. Moving averages indicate a short-term bullish trend for oil. Prices have broken through the area between the signal lines upward, which indicates pressure from buyers of Black Gold and a potential continuation of growth in the value of the asset from current levels. At the moment, we should expect an attempt to develop a decline and test the support level near the area of 85.35 dollars per barrel. Next, a rebound upward and continued growth of the oil rate to the area above the level of 92.35.
An additional signal in favor of an increase in quotes and prices for Brent oil will be a test of the support line on the relative strength indicator (RSI). The second signal will be a rebound from the upper border of the downward channel. Cancellation of the option of rising oil prices will be a fall in prices and a breakdown of the level of 83.05 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 78.05. Confirmation of the growth of quotes and oil prices will be the breakdown of the resistance area and the closing of Brent prices above the level of 90.45, which will indicate a breakdown of the upper boundary of the bullish channel, and this is a signal for growth by the width of the channel.
Brent Forecast for July 5, 2024 suggests an attempt to test the support level near the 85.35 area. Further, oil continues to grow with a target above the level of 92.35. A test of the trend line on the relative strength index (RSI) will support the rise of the asset. Cancellation of the option to raise the price of Brent oil will be a fall and a breakdown of the level of 83.05. This will indicate a continued decline in quotes to the area below the level of 78.05.
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