Brent “does not believe” OPEC+
|Brent oil prices fell to 78.30 USD per barrel on Monday.
Despite OPEC+ decisions at the November meeting, oil prices are falling. The issue is that the actual parameters of OPEC+ quotas turned out to be lower than investors expected. This does not cancel out the Cartel's powerful support on prices. However, the market cannot cope with emotional reactions.
Escalating tensions in the Middle East observed last weekend may bolster the oil quotes. The factor of a strong US dollar is working oppositely. While the USD is rising, commodity assets appear less attractive to buyers.
Brent technical analysis
On the H4 Brent chart, there was a rebound from the 84.81 level. The market has fallen to 80.10 and is forming a consolidation range around this level today. A decline to 78.10 is expected, followed by a rise to 80.00 (a test from below). Subsequently, the price could continue its downward trajectory to 76.50. A growth wave might start after the price reaches this level, targeting 85.80. This is the first target for the growth wave. Technically, this scenario is confirmed by the MACD, with its signal line breaking the zero mark, aimed strictly downwards.
On the H1 Brent chart, a consolidation range has expanded downwards to 78.10. Today, a rise to 80.10 is expected, followed by a drop to 76.50, potentially continuing to 75.40. Technically, this scenario is confirmed by the Stochastic oscillator, with its signal line below 20 and poised to rise to the 50 mark.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.