Why Oil Jumped to the Upside Last Week? – Brent Crude Oil Forecast
|On Friday, oil jumped more than 3% in a single day, its biggest move in almost four weeks driven from the announcement that Saudi Arabia had the lowest crude exports in three years of 6.9 million barrels a day. Going a bit back, Saudi Arabia stated that they would cut exports to 6.6 million barred by the end of August. It’s worth mentioning that Saudi Arabia is the biggest crude petroleum exporter globally and United States one of the two biggest importers along with China.
Brent Crude Oil Recovered Some of Its Gains Jumping 4%
The Brent crude oil recovered some of the previous’ days losses and added 4% to its performance following the bounce off the $49.90 support barrier, closing the day above the 200-day SMA. On the medium-term timeframe, the oil remains above the 50-SMA but is trading with weak momentum.
From a technical point of view, the price is developing above the two simple moving averages 50 and 100, while it is moving near the 200-SMA, which is acting as strong resistance obstacle. The technical indicators are confirming the bullish thought as both are holding in bullish territory. The MACD oscillator is rising above the mid-level line, whilst the RSI indicator is holding above the 50 level. The next level to have in mind to the upside is the $53.50 barrier.
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