Brent crude oil prices are rising on Friday driven by increased geopolitical tensions in the Middle East. Market fears about energy supply disruptions have again intensified in recent days.
A surge in commodity prices at the start of Friday’s trading offset some of the previous day's losses caused by the US inflation data release.
ANZ analysts also highlight the improvement in global economic conditions and the reduction in oil production by OPEC+ countries as additional factors that support the oil price.
In the latest report, the OPEC kept its bullish outlook for growth in global oil consumption this year, predicting a rise by 2.7 million barrels per day in the third quarter.
Market participants have noted an increase in oil demand over the last few days, which exceeds forecasts. This triggered speculation about the growth of oil prices up to 100 dollars this summer.
European Central Bank (ECB) officials left interest rates unchanged on Thursday, but hinted at a near-term reversal in the regulator's monetary policy. Federal Reserve (Fed) officials, on the other hand, emphasized that they would not rush to make a similar decision due to volatile inflation figures. The actions of global central banks also have a significant impact on oil prices.
Brent oil prices are forming a new uptrend on the D1 timeframe.
The price is forming a third ascending wave on the H2 timeframe. Breaking through the top of the first wave at the level 87.20 has already taken place. This may increase the bullish movement in the near term. Positive figures in the Bulls Power indicator (standard values) show the price tendency to rise.
Signal:
The short-term outlook for Brent crude oil suggests buying.
The target is at the level of 96.00.
Part of the profit should be taken near the level of 91.95.
A Stop-loss could be set at the level of 87.10.
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.
