Brent Crude Prices Buoyed by OPEC+ Supply Decision

On Monday, the trading landscape for Brent crude oil showcased a notable surge, with the price per barrel reaching USD 81.20. This upward movement in Brent crude prices has been heavily influenced by the collective actions of OPEC+ countries, who have played a pivotal role in managing oil supply to stabilize market prices.

OPEC+ and Market Stabilization

The global oil markets have been under the watchful eye of OPEC+ member nations, who are known for their strategic production adjustments aimed at price control. Over the previous month, a sense of calm has been observed in energy carrier markets, evidenced by a four-week streak of declining prices. This trend has been attributed to the easing of geopolitical tensions in the Middle East, which previously stoked fears over potential supply disruptions.

Upcoming OPEC+ Meeting

Attention is now turning towards an upcoming meeting of OPEC+, scheduled for the 26th of November, which may broach the subject of further supply constraints. These deliberations are critical, as they hold the potential to direct the future landscape of oil prices.

Crude Oil Prices and Technical Analysis

Since the end of September, an observable decrease of nearly 20% in crude oil prices has been recorded. However, technical analysis presents an interesting picture for Brent crude. On the H4 chart, market analysts have identified a potential upward trajectory for Brent, aiming first towards a threshold of USD 82.72. Following a possible interim correction to USD 79.70, another wave of growth could propel prices towards a local target of USD 86.85, as suggested by bullish indications from the MACD.

Further inspection of the H1 Brent chart indicates the completion of an uptrend to USD 82.72. Post this milestone, a retraction to USD 79.70 may be on the horizon, preceding another climb expected to breach USD 83.25. Overcoming this barrier could pave the way for Brent to reach the local target of USD 86.85. The Stochastic oscillator concurs with this outlook, with a signal line peaking over 80 and pointing sharply upwards, hinting at the setting of new price highs.

Brent, OPEC+, Oil