The price of Brent oil rose: dependence on stock market demand worked

By the RoboForex analysis department

The commodity market was moderately adjusted on Tuesday morning after Brent crude rose 2% the day before. A barrel of the North Sea variety is around $84.

The main support factor today is the outlook for improving global demand. In addition, there are expectations that global oil producers will tighten supply.

The latest oil market reports from OPEC+, the International Energy Agency and the US Department of Energy suggest steady growth in energy demand in the second half of 2024.

Yesterday’s rise in the price of Brent was also supported by a rise in the value of the whole range of risky assets. This is due to the easing of inflationary pressures in the world’s largest economies. Such signals strengthen the bet on the reduction of the cost of lending in the coming months.

The proposal is supported by the collaborative efforts of key OPEC+ member countries, including Russia and Iraq, which have confirmed their intentions to adhere to agreed production quotas. Saudi Arabia has also expressed its willingness to adjust production volumes to take full account of market conditions.

Technical Analysis of Brent

On the H4 Brent chart, the market has formed a consolidating range above the 81.60 level. Today, the price moved up from this range, continuing to develop a rising wave to the 86.40 level. After reaching this level, we anticipate a correction to 81.60. Next, we expect the trend to continue to the 89.00 level. This scenario is technically confirmed by the MACD indicator, with the signal line above the zero mark and pointing strictly upwards.

On the H1 Brent chart, the market received support at 81.56 and began the development of the second half of the rising wave. At the moment, the local target at the level of 83.98 is met. Today, a bullish link to 84.00 is possible. Next, we expect a correction link at the 82.76 level (top test), followed by a rise to the 86.40 level. From a technical point of view, this scenario is confirmed by the stochastic oscillator. Its signal line is below the 20 level and is preparing for the start of the upswing.

Disclaimer

Any forecast contained herein is based on the author’s own opinion. This analysis cannot be treated as trading advice. RoboForex assumes no responsibility for trading results based on trading recommendations and reviews contained herein.

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