. Latest Brent Crude Oil Analysis: Supply Disruptions Soar

Latest Brent Crude Oil Analysis: Supply Disruptions Soar

02 Apr 2024

The price of Brent oil reaches its peak for the year amidst new concerns over supply disruptions.

FUNDAMENTAL OVERVIEW:

On Tuesday, Brent’s global oil benchmark briefly surpassed $89 per barrel, marking its highest level since October. This increase came amid renewed concerns over oil supply disruptions due to Ukrainian attacks on Russian energy facilities and escalating tensions in the Middle East.

According to a Reuters examination of images depicting the aftermath of the attack, it appears to have targeted the primary oil refining unit of the refinery. This unit is responsible for approximately half of the plant’s annual production capacity, which amounts to 340,000 barrels per day (bpd).

Ranked among the top three global oil producers and one of the leading exporters of oil products, Russia has been grappling with a series of Ukrainian assaults on its oil refineries. In response, Russia has initiated its attacks on Ukrainian energy infrastructure.

Investors are anticipating Wednesday’s ministerial panel gathering of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, collectively referred to as OPEC+. According to sources within OPEC+, the panel is expected to refrain from suggesting any alterations to the current oil output policy.

Meanwhile, there was an improvement in the demand outlook, with March data indicating growth in Chinese manufacturing activity for the first time in six months, and in the United States for the first time in eighteen months.

BRENT CRUDE OIL TECHNICAL ANALYSIS DAILY CHART:

Technical Overview:

Brent Crude Oil is trading within an up channel.

Brent Crude Oil is moving above all the Moving Averages (SMA).

The Relative Strength Index (RSI) is in the Buying zone, while the Stochastic oscillator suggests a Neutral trend.

Immediate Resistance level: 89.20

Immediate support level: 87.39

HOW TO TRADE BRENT CRUDE OIL

Following a decline, Brent Crude Oil found support and began trading within an upward channel, forming a higher high structure. Currently, it is trading near its crucial resistance zone, facing rejection, and retracting towards its support zone. If it respects the support zone, there’s potential for further upside movement.

TRADE SUGGESTION- BUY LIMIT– 87.04, TAKE PROFIT AT- 89.34, SL AT- 85.71.