Brent In The Green Ahead Of OPEC Meet
2022.10.03 13:43
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Oil prices are recovering on Monday, expecting bold and decisive moves by OPEC+. is currently rising to $87.36. These expectations might eliminate fears of global recession for a while.
The will take place on Oct. 5. Sources from Reuters believe that the cartel and its members might agree to cut oil extraction by 1 million BPD, which is about 1% of global consumption.
However, it shouldn’t be taken literally. Agreeing on the oil extraction quotas doesn’t mean a decline in production. OPEC+ is already far behind its plan. Then again, if Saudi Arabia covers most of the reduction, market expectations would materialize.
Oil extraction in the US remains unbalanced. The latest report from Baker Hughes confirmed that the in the country increased by two units, up to 604. However, the indicator has barely changed in August and September.
Technical View – Brent
In the H4 chart, having broken 88.50 to the upside, Brent continues growing towards 90.25 and may reach this level later today. Later, the market may form one more descending structure to reach 81.00 and then start growing with the target at 92.20.
From the technical point of view, this scenario is confirmed by the MACD Oscillator: its signal line is moving above 0 and may continue trading to reach new lows later.
Brent 4-hour price chart.
As we can see in the H1 chart, after forming a new consolidation range of around 86.86 and breaking it to the upside, Brent is still moving upwards with the target at 90.25. However, the market may yet correct and then resume falling towards 81.00, at least.
From the technical point of view, this idea is confirmed by the Stochastic Oscillator: its signal line is moving near 50. Later, the line may grow to rebound from 80 and resume falling to return to 20.
Brent 1-hour price chart.
Disclaimer: Any forecasts contained herein are based on the author’s particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.
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