International events reinforce oil traders' interest in buying Brent

01 March 2024 146
International events reinforce oil traders' interest in buying Brent

On Friday, oil prices are demonstrating a slight growth. This is due to the ongoing tensions in the Middle East, which are preventing the decline in prices. Market expectations of a quick resolution of conflicts in this region have not materialized, as noted by Reuters analysts in their latest review.

 

At the same time, the cost of Brent oil is likely to continue to hold near the estimated price of last week, experts say.

 

The actions of the Organization of the Petroleum Exporting Countries also do not allow the prices to go down or up significantly. According to Reuters, this month OPEC increased production of oil to 26.42 million barrels per day. The February reading exceeded the January one by 90,000 bpd.

 

In addition, information about the replenishment of oil reserves in the U.S. may become a catalyst for the growth of oil prices. The administration of President Joe Biden is slowly replenishing the Strategic Petroleum Reserve (SPR) after selling a record amount of oil from the stockpile in 2022. The Department of Energy, or DOE, said this week it has bought 3.2 million barrels of domestically-produced crude oil. It is slated to be delivered to the SPR in July.

 

Two years ago, the Biden administration decided to sell 180 million barrels of crude from the reserve. The Department of Energy also conducted a sale of 38 million barrels that had been mandated by Congress. This was the largest ever SPR sale in the U.S.

 

Brent crude oil prices have been correcting for two months and a half.

 

In terms of wave analysis, the price is in the process of forming the third ascending wave on the H2 timeframe. Breaking through the top of the first wave at 83.65 will strengthen the upward price movement. Bulls Power indicator volumes (standard values) are in the positive zone, indicating the upward movement.

 

Signal:

Short-term prospects for Brent oil suggest buying

The target is at the level of 87.00.

Part of the profit should be taken near the level of 83.65.

A stop-loss could be placed at the level of 79.50.


The bullish trend is short-term, so trade volume should not exceed 2% of your balance.

This content is for informational purposes only and is not intended to be investing advice.

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