Brent crude prices continue to consolidate in the range of $66.0–67.5 per barrel following a recent decline. This range falls within a broader one that has been forming since April, with a lower boundary at $59 per barrel.
It should be noted that the current price drop driven by easing tensions in the Middle East has been below pre-conflict levels. As highlighted in earlier analyses, oil prices rarely sustain large gaps after sharp movements and typically retrace to fill them, retesting breached levels.
In this case, Brent has two key rebound targets above the current range: $76 per barrel and $70.5, which is more likely to be tested soon.
Yesterday's US oil inventory data provided fundamental support for Brent prices. The American Petroleum Institute (API) had forecast a decline of 0.6 million barrels, but the actual figure was -4.277 million. Later, official data confirmed the deficit: -5.83 million barrels versus an expected draw of 1.2 million.
Today, a set of indicators reflecting future production volumes will be published, including durable goods orders and capital goods orders. If the actual figures exceed forecasts, this would signal rising demand for commodities, including oil.
The overall recommendation is to buy Brent crude.
Profits should be taken at the level of 70.5. A Stop loss could be set at the level of 62.5.
The volume of the opened position should be set in such a way that the potential loss (protected by the Stop loss) is no more than 1% of your deposit funds.
This content is for informational purposes only and is not intended to be investing advice.
