This week, Brent oil prices continue their upward trend, rising to $93.5 per barrel. This growth is due to several factors. One of the main factors is the OPEC+ decision to extend the reduction in oil production by 1.3 million barrels per day until the end of this year. The decision raises fears of a shortage in the oil market in the fourth quarter. In addition, Russia has imposed restrictions on fuel exports to stabilize the domestic market, and this also affects oil prices. US crude oil inventories continue to decline, which is also helping to strengthen prices.
However, it is worth noting that investors remain cautious due to increased global economic uncertainties and tough signals regarding monetary policy in the US. Next week will be interesting, as OPEC will meet to discuss further steps in the field of oil production.
BRENT Weekly Forecast October 2 — 6, 2023
BRENT oil quotes end the trading week near the area of 93.36 dollars per barrel. The asset continues to move within the growth and bullish channel. Moving averages indicate a bearish trend. Prices have broken through the area between the signal lines upward, which indicates pressure from buyers of raw materials and a potential continuation of growth from current levels. At the moment, we should expect an attempt to develop a decline and test the support area near the level of 88.05. Then, it is worth considering a rebound upward and continued growth of oil to the area above the level of $110.55 per barrel.
An additional signal in favor of an increase in oil prices this week 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 bearish channel. Cancellation of the option to raise quotes and prices for BRENT oil in the trading week of October 2 — 6, 2023 will be a fall and a breakdown of the level of 78.65. This will indicate a breakdown of the support area and a continuation of the fall of oil to the area below the level of 70.05. With a breakdown of the resistance area and closing of quotes above the level of 97.65.
BRENT Weekly Forecast October 2 — 6, 2023 suggests an attempt to test the support area near the level of 87.65. Where can we expect a rebound and an attempt to continue the growth of oil with a potential target at 113.55. An additional signal in favor of a rise in oil prices will be a test of the trend line on the relative strength index (RSI). Cancellation of the growth option will be a fall in price and a breakdown of the 78.65 area. This will indicate a breakdown of the support area and a continuation of the fall in oil prices with a target below the level of 70.05.
