Crude Oil (WTI) may rise to 90.80 - 94.00 Daily and weekly bull
1 Hour Chart:
Pivot
86.00
Our preference
Long positions above 86.00 with targets at 87.10 & 87.60 in extension.
Alternative scenario
Below 86.00 look for further downside with 85.35 & 84.65 as targets.
Comment
Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.
Supports and resistances
88.10
87.60
87.10
86.52 Last
86.00
85.35
84.65
Number of asterisks represents the strength of support and resistance levels.
Pivot
86.00
Our preference
Long positions above 86.00 with targets at 87.10 & 87.60 in extension.
Alternative scenario
Below 86.00 look for further downside with 85.35 & 84.65 as targets.
Comment
Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.
Supports and resistances
88.10
87.60
87.10
86.52 Last
86.00
85.35
84.65
Number of asterisks represents the strength of support and resistance levels.
Bloomberg reports Bank of America's anticipation of Brent oil prices hitting $112 per barrel. This rise of 18% since the year's start is driven by OPEC+ production cuts, high raw material demand, and geopolitical tensions, especially in the Middle East. Technical factors support Bank of America's prediction of further oil price growth.
On April 5, March Brent crude futures on ICE Futures in London rose 0.2% to $90.87 per barrel. If Bank of America's forecast materializes, oil quotes may soar over 23% from current levels.
Bloomberg notes a stable technical outlook for Brent oil, with the 50-day moving average surpassing the 200-day moving average on April 4. This could prompt additional buying by trend-following funds, potentially leading Brent crude towards $112 per barrel, according to Bank of America analyst Paul Siana.
Bank of America's baseline scenario predicts average Brent and WTI oil prices of $86 and $81 per barrel respectively this year, with futures potentially rising to $95 per barrel in summer.
Analysts suggest improved economic growth expectations may lead to a global oil market deficit of about 450 thousand barrels per day in the second and third quarters.
OPEC+ extended oil production cuts by 2.2 million barrels per day until June's end. Key members, led by Saudi Arabia, recommended maintaining this policy, shifting the oil market towards a structural deficit, according to Bank of America.
Market fears of widened conflicts in the Middle East could disrupt oil supplies, further heightened by geopolitical tensions over recent months, increasing oil demand and prompting supply cuts.
Freight issues in the Panama and Suez Canals are redirecting carriers to longer routes, boosting oil demand by 150,000 barrels per day.
Additionally, Bank of America notes that anticipated rate cuts by major central banks in the coming months may contribute to higher energy prices in summer.