Oil Prices Defy Constraints and Surge to New Highs
19 Sep 2023
Despite supply constraints and a production decline, oil prices reached fresh highs.
Tuesday saw new highs for oil prices as traders took supply limitations’ effects into account. Russia and Saudi Arabia’s production cuts have caused a tightening of supply, which has resulted in this rise in prices. Investors have persisted in supporting the commodities despite worries about China’s economic expansion and a weak European economy. U.S. oil prices increased by 3.7% last week, while Brent prices increased by 3.6%; both reached their highest levels on Friday since November.
Despite these concerns, Wirth emphasized that higher oil prices had persisted for the majority of this year and all of last year without causing the much-discussed recession. He underlined his belief in the continued strength of the basic forces that underpin both the American and global economies.
Despite the market turbulence witnessed since the epidemic started, Chevron’s position on long-term oil price expectations remains unchanged. According to Wirth, this time was characterized by unpredictable and changing prices that deviated from the mid-cycle pattern.
BRENT CRUDE OIL TECHNICAL ANALYSIS DAILY CHART:
Brent Crude Oil is currently trading in the up channel.
Brent Crude Oil is currently trading above 20&50 SMA.
RSI is in the buying zone which suggests bullishness, and Stochastic suggests a neutral trend.
Immediate resistance is at 94.19 & its immediate support level is 92.35.
HOW TO TRADE BRENT CRUDE OIL IN THIS WEEK
Brent crude oil is trading in up channel and rising sharply while making higher highs. As of now, Brent crude oil is trading around the resistance zone, if this zone is broken then furthermore upside is possible.
TRADE SUGGESTION- STOP BUY- 94.69, TARGET AT- 96.13, SL AT -93.77.