Brent crude oil prices dropped slightly on Friday, but by the end of the week they should rise by almost 4%. The increase in the cost of raw materials is due to a fall in US inventories and an improved forecast of global demand for 2024 for the fourth time since November.
On Wednesday, the Energy Information Administration (EIA) reported a sharp decline in US oil stockpiles by more than 1.5 million barrels over the past week. The drop in crude inventories was related to increased refinery throughput in the country. Gasoline stocks, in turn, declined because of a seasonal surge in demand.
On Thursday, the International Energy Agency (IEA) once again raised its forecast for global oil consumption in 2024. According to its latest report, global oil demand will increase by 1.3 million barrels per day this year. The previous forecast of the organization was 110,000 barrels less.
Due to continuous supply disruptions in the Red Sea and the OPEC+'s decision to extend their export restrictions for the second quarter, the IEA revised its forecasts. Now the agency expects a slight deficit in the oil market this year, while previously a surplus was predicted.
Brent crude oil prices exited a long correction channel.
In terms of wave analysis, the price is forming the third ascending wave on the H4 timeframe. Breaking through the top of the first wave at the level of 83.70 has already taken place. The upward movement may intensify in the near term. The Bulls Power indicator (standard values) are in the positive zone, pointing to the upward movement.
Signal:
The short-term outlook for Brent crude oil suggests buying.
The target is at the level of 93.30.
Part of the profit should be taken near the level of 89.20.
A Stop-loss could be set at the level of 79.70.
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.
