As the new week in July kicks off, the commodities market is in high spirits. The price of Brent crude oil has surged to 81.00 USD per barrel. The oil sector is responding to rising global tensions, which may have adverse effects on the supply of energy resources. However, demand expectations are stable, and are driving prices upward.
There are growing concerns about the potential displacement of a portion of biofuels by oil and its derivatives, particularly amidst complications with the extension of the "grain deal." This further supports the upward trend in commodity prices.
According to Baker Hughes data, drilling activity in the US has decreased. The number of oil rigs fell by 7 units to 530, and the number of gas rigs decreased by 2 units to 131.
Technical analysis of the Brent Oil price chart
On the H4 chart, Brent is currently developing a third wave of growth. Having reached 81.40 USD, a consolidation range is expected to form just below this level. A breakout above this range would likely lead to the continuation of the upward wave, targeting 81.81 USD. Surpassing this level could open the potential for further growth towards 84.00 USD, with the possibility of continuing the upward trend to 85.00 USD. Technically, the MACD indicator confirms this scenario; with its signal line above the zero mark, it is showing a clear upward direction, indicating potential new highs.
On the H1 chart, Brent completed an upward wave to 81.04 USD, followed by a correction to 80.30 USD. After the correction, an upward wave is anticipated to begin targeting 81.80 USD. This target is local. Technically, the Stochastic oscillator also supports this outlook, with its signal line above the 50 mark, indicating a readiness to continue rising towards the 80 mark.
Before you enter foreign exchange and stock markets, you have to remember that trading currencies and other investment products is trading in nature and always involves a considerable risk. As a result of various financial fluctuations, you may not only significantly increase your capital, but also lose it completely. Therefore, our clients have to assure RoboForex that they understand all the possible consequences of such risks, they know all the specifics, rules and regulations governing the use of investment products, including corporate events, resulting in the change of underlying assets. Client understands that there are special risks and features that affect prices, exchange rates and investment products.
Recommended Content
Editors’ Picks
Australian Dollar appreciates despite stronger US Dollar, PMI awaited
The Australian Dollar (AUD) continues to strengthen against the US Dollar (USD) following the release of mixed Judo Bank Purchasing Managers' Index (PMI) data from Australia on Friday. The AUD also benefits from a hawkish outlook by the Reserve Bank of Australia (RBA) regarding future interest rate decisions.
Japanese Yen remains on the front foot against USD, bulls seem non-committed
The Japanese Yen (JPY) attracts some buyers for the second straight day on Friday amid reviving bets for more interest rate hikes by the Bank of Japan (BoJ), though it lacks any follow-through.
Gold advances to near two-week high, eyes $2,700 on geopolitical tensions
Gold price (XAU/USD) prolongs its uptrend for the fifth consecutive day on Friday and climbs to a nearly two-week top, around the $2,690-2,691 area during the Asian session. Intensifying Russia-Ukraine tensions force investors to take refuge in traditional safe-haven assets and turn out to be a key factor underpinning the precious metal.
Ethereum Price Forecast: ETH open interest surge to all-time high after recent price rally
Ethereum (ETH) is trading near $3,350, experiencing an 10% increase on Thursday. This price surge is attributed to strong bullish sentiment among derivatives traders, driving its open interest above $20 billion for the first time.
A new horizon: The economic outlook in a new leadership and policy era
The economic aftershocks of the COVID pandemic, which have dominated the economic landscape over the past few years, are steadily dissipating. These pandemic-induced economic effects are set to be largely supplanted by economic policy changes that are on the horizon in the United States.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.