Brent Crude Oil: demand for "black gold" remains high
Current trend
Brent Crude Oil continues its active uptrend against the backdrop of continued high global demand for raw materials, exceeding 89 dollars per barrel, the fall 2014 high. At the moment, the instrument is traded in the area of 87.79.
According to the January report of OPEC+, released the day before, the volume of the transaction by the participating countries is 126%, which is higher than the November figure of 122%. The total production is now 27.88M barrels per day, and it is clear that the demand in the market continues to exceed supply, and the current monthly increase in the production of "black gold" of 400K barrels per day will not be enough. In addition, the cartel predicts that the supply of countries outside the organization will increase by 3M barrels per day in 2022, largely due to an increase in supplies from the United States, where production from shale deposits is projected to increase. In addition, according to OPEC+ representatives, energy demand may remain stable against the backdrop of the observed recovery of the global economy, even despite a global surge in the number of cases of infection with the Omicron strain of coronavirus and a possible resumption of restrictions on travelling.
The current growth of Brent Crude Oil quotes is also confirmed by statistics from the US Commodity Futures Trading Commission (CFTC). According to the agency, over the past week, investors increased their positions in the asset to 360.5K from 332.8K, which is the most dynamic growth since November 2020.
Support and resistance
On the global chart, the asset continues rising as part of the global pattern Expanding Formation. Technical indicators maintain a steady buy signal: the fluctuation range of the Alligator EMA is expanding towards growth and the histogram of the AO oscillator, being in the buy zone, forms bars with an uptrend.
Support levels: 85.76, 81.15.
Resistance levels: 88.58, 91.00.
Brent Crude Oil continues its active uptrend against the backdrop of continued high global demand for raw materials, exceeding 89 dollars per barrel, the fall 2014 high. At the moment, the instrument is traded in the area of 87.79.
According to the January report of OPEC+, released the day before, the volume of the transaction by the participating countries is 126%, which is higher than the November figure of 122%. The total production is now 27.88M barrels per day, and it is clear that the demand in the market continues to exceed supply, and the current monthly increase in the production of "black gold" of 400K barrels per day will not be enough. In addition, the cartel predicts that the supply of countries outside the organization will increase by 3M barrels per day in 2022, largely due to an increase in supplies from the United States, where production from shale deposits is projected to increase. In addition, according to OPEC+ representatives, energy demand may remain stable against the backdrop of the observed recovery of the global economy, even despite a global surge in the number of cases of infection with the Omicron strain of coronavirus and a possible resumption of restrictions on travelling.
The current growth of Brent Crude Oil quotes is also confirmed by statistics from the US Commodity Futures Trading Commission (CFTC). According to the agency, over the past week, investors increased their positions in the asset to 360.5K from 332.8K, which is the most dynamic growth since November 2020.
Support and resistance
On the global chart, the asset continues rising as part of the global pattern Expanding Formation. Technical indicators maintain a steady buy signal: the fluctuation range of the Alligator EMA is expanding towards growth and the histogram of the AO oscillator, being in the buy zone, forms bars with an uptrend.
Support levels: 85.76, 81.15.
Resistance levels: 88.58, 91.00.