Brent crude oil price is currently on the verge of recording its third consecutive weekly decline. This decline can be attributed to diminishing concerns over supply tightening in the Middle East and the easing of tensions in the Israel-Hamas conflict.
The price per barrel of oil was $80.93 on Friday as weak economic data released by China raised concerns about a decline in demand by the second-largest economy. On the other hand, The US inventories for crude oil rose by 12 million barrels last week which is the largest increase since early 2023.
Brent Crude oil has broken its weekly bullish market structure after making a lower low on the daily timeframe. This development raised concerns among the bulls as the recent breakdown below 200 MA further solidified the bearish outlook for Brent oil price.
The fate of the Brent Crude oil forecast hinges on whether the bulls can successfully break above the $88-$89 resistance level in the coming days.
Failure to do so could lead to a potential weakness in the price of oil, putting the downside target of $71 on the cards. However, a hopeful scenario for the bulls can be a reclaim of the 200 MA level in the daily timeframe which has the potential to act as a dynamic support level.
This post was last modified on %s = human-readable time difference 16:25