On Friday, prices for Brent crude fell by 0.3% after rising on Thursday. This was caused by the fact that the impact of geopolitical tensions and disruptions in U.S. oil production from cold weather were offset by concerns over slowing demand growth in China.
According to Hiroyuki Kikukawa, president of NS Trading, traders do not want to take short positions amid instability in the Middle East. However, they are also cautious about continuing to build up long positions as China's economic recovery remains slow.
According to Hiroyuki Kikukawa, relations between the U.S. and China may become more strained as the U.S. elections approaches. This is likely to have a negative impact on energy demand.
In terms of global demand for oil, the International Energy Agency (IEA) and the Organization of the Petroleum Exporting Countries (OPEC) have clashed in recent years.
The IEA predicts that oil demand will peak by 2030 as the world shifts to cleaner fuels. However, OPEC disagrees with this assumption.
According to the EIA calculations, global demand for oil in 2024 will rise by 1.24 million barrels per day. This was the third upward revision of the forecast in recent months, but it was below OPEC's estimates by 2.25 million barrels per day.
The IEA's upward revision of the forecast by 180 thousand barrels per day against previous estimates was due to the improving global demand for oil. Lower crude prices in the fourth quarter and China's petrochemical sector expansion also had an impact on the IEA's data change.
Brent crude quotes have been correcting for three weeks, and have formed a triangle pattern on the H4 timeframe. The Bulls Power indicator volumes (standard values) are holding in the positive zone, indicating the upward movement. Impulsive upward movement may occur after the price overcomes the triangle resistance.
Signal:
The short-term outlook for Brent is to buy.
The target is at the level of 84.90.
Part of the profit should be fixed near the level of 81.40.
A Stop-loss should be placed at the level of 75.15.
The bullish trend has a short-term character, so the trade volume should not be more than 2% of your balance.
This content is for informational purposes only and is not intended to be investing advice.
