Bullish Brent crude oil price predictions appear to be returning to the market after Monday’s big 5% upside move. This push sets the price action of the Brent crude oil benchmark on course to target a 4th straight day of gains.
Monday’s upsurge follows Saudi Arabia’s refusal to raise production following US President Joe Biden’s fence-mending visit. US President
Joe Biden paid a visit to the country on the last leg of his Middle East visit, urging its leaders to raise production to cool prices. However, the country’s rulers insist that any such decisions would be within the framework of OPEC + commitments. Gasoline prices in the US and in many parts of the world are at record highs.
However, the recent gains and additional Brent crude oil price predictions could be limited by a further rate hike by the Fed, sparking recession fears. Chinese demand may also pose a concern for the oil markets as the country continues with its controversial mass testing and widespread lockdown measures as it pursues its zero-COVID policy.
Monday’s big surge in Brent crude looks set to challenge the resistance at 106.11. Clearance of this level sends the pair toward the 109.58 resistance, where the 21 April high and 24 June low are located. The 114.03 price mark forms a new upside target (5 May and 4 July highs) before the 120.00 psychological price level (29 June high) and 124.47 resistance barrier (8-10 June highs) become additional viable targets to the north.
On the other hand, a decline below sequential pivots at 100.92 and 97.40 (28 February and 16 March lows) creates a chance for the bears to push for a deeper correction toward 91.32 (16 February low). 86.72 serves as an additional target to the south if there is further price deterioration.
This post was last modified on Jul 18, 2022, 15:12 BST 15:12