Upward dynamics of Brent remain amid upcoming OPEC+ meeting

29 March 2024 89
Upward dynamics of Brent remain amid upcoming OPEC+ meeting

On Friday, oil prices rose due to reports of a decline in the number of active drilling rigs in the U.S. In addition, investors are looking forward to the results of the upcoming meeting of the Organization of the Petroleum Exporting Countries (OPEC+), where the issue of possible further limitation of oil production volumes will be considered.


During the week, Brent rose by 2.4%, WTI gained about 3.2%. Meanwhile, during the prior session, an increase in crude oil and gasoline inventories in the U.S. put downward pressure on prices. 


According to Baker Hughes, the number of oil and gas rig counts fell by three to 621 in the week to March 28. 


Meanwhile, analysts at JPMorgan believe the U.S. Federal Reserve (Fed) and the European Central Bank (ECB) will start a cycle of interest rate cuts in June. Lower interest rates typically support oil demand.


Meanwhile, traders will watch for the results of next week's OPEC+ meeting. Increased geopolitical instability increases investors' worries about disruptions in oil supplies. However, OPEC+ is unlikely to change its policy course.


Brent oil quotes are forming a new upward trend on the D1 timeframe.


After the price exit from the long corrective range, the quotes began to form a new wave chain. Brent is in the formation of the third ascending wave on the H2 timeframe. Breaking through the top of the first wave at 87.17 will strengthen the bullish movement. Bulls Power indicator volumes (standard values) are in the positive zone, confirming the upward trend.

 

Signal:

The short-term outlook for Brent is to buy.

The target is at the level of 93.30.

Part of the profit should be fixed near the level of 89.20.

A Stop-loss should be placed at the level of 83.50.

 

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.

error
More
Comments
New Popular
Send
Commenting rules