Brent crude oil prices decreased slightly on Wednesday, falling to 89.50 USD per barrel. The decline is primarily attributed to concerns over global oil demand, particularly given the economic indicators coming out of China, the world's largest energy importer. Although China's GDP grew faster than expected in Q1 2024, other critical economic parameters such as property investment, Retail Sales, and industrial production remain subdued, dampening overall demand prospects.

According to the American Petroleum Institute (API), US crude oil inventories have risen more than expected, adding to the complexities. While such an increase in inventories typically might bolster oil prices, the prevailing anxiety over global demand continues to exert downward pressure.

Political developments in the Middle East also remain a focal point for the oil markets. A high-level meeting involving Western nations and Israel was postponed to Wednesday, with efforts expected to focus on averting a significant escalation in regional conflicts. Given the region's important global oil supply, such disputes are crucial for the oil sector.

Later today, the US Department of Energy is scheduled to release updated statistics on crude oil and petroleum product inventories for the week, which could influence market volatility.

Technical analysis of Brent

Brent

On the H4 chart, Brent crude has formed a consolidation range around the 88.30 USD level, indicating a lack of a clear trend. If there is an upward breakout from this range, a rise to 92.00 USD could be anticipated. This could be followed by a potential correction to 84.50 USD and further growth to 94.00 USD, potentially extending to 97.00 USD. The MACD indicator supports this scenario, with the signal line nearing zero and expected to rebound upwards, suggesting continued growth.

Brent

On the H1 chart, a growth impulse to 90.20 USD has been completed, and a corrective movement to 88.80 USD is underway. Once this correction is completed, a new growth wave towards 92.00 USD is anticipated, likely followed by a new corrective phase. The Stochastic oscillator, positioned below 20, prepares for a rebound, supporting the likelihood of further upward movement.

Before you enter foreign exchange and stock markets, you have to remember that trading currencies and other investment products is trading in nature and always involves a considerable risk. As a result of various financial fluctuations, you may not only significantly increase your capital, but also lose it completely. Therefore, our clients have to assure RoboForex that they understand all the possible consequences of such risks, they know all the specifics, rules and regulations governing the use of investment products, including corporate events, resulting in the change of underlying assets. Client understands that there are special risks and features that affect prices, exchange rates and investment products.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD moves below 1.0850 despite a bullish bias

EUR/USD moves below 1.0850 despite a bullish bias

EUR/USD extended losses to near 1.0850 during the Asian session on Wednesday. The pair faces challenges as the US Dollar gains ground amidst emerging risk aversion sentiment, possibly triggered by hawkish remarks from Minneapolis Fed President Neel Kashkari.

EUR/USD News

GBP/USD trims gains above 1.2750 amid US Dollar rebounds

GBP/USD trims gains above 1.2750 amid US Dollar rebounds

GBP/USD trades with mild losses around 1.2760 during the Asian session on Wednesday. The modest recovery of the US Dollar and US yields amid the diminishing expectations of a rate cut by the US Federal Reserve in September weighs on the major pair.

GBP/USD News

Gold buyers take a breather but technicals stay bullish

Gold buyers take a breather but technicals stay bullish

Gold price is posting small losses below $2,360, pausing a three-day recovery early Wednesday. The US Dollar resurgence acts as a headwind for the Gold price, despite heigthening Middle East tensions and a pick up in Indian physical Gold demand.

Gold News

Bitcoin long-term holders begin re-accumulation after Semler Scientific and Mt Gox make major whale moves

Bitcoin long-term holders begin re-accumulation after Semler Scientific and Mt Gox make major whale moves

Bitcoin declined briefly from the $70,000 mark on Tuesday as Semler Scientific and Mt Gox made notable whale moves. Glassnode also shared key on-chain insights that breathe clarity into the market's current state.

Read more

Inflation week: Eyes on Germany’s numbers, Eurozone and the US PCE

Inflation week: Eyes on Germany’s numbers, Eurozone and the US PCE

Today we get Germany’s numbers and on Friday, both the Eurozone and the US PCE. For the Eurozone, expectations are for core to remain the same at 2.7% and for the ECB to cut in June. This is being named a “hawkish cut,” one of those inherently self-contradictory terms.

Read more

Majors

Cryptocurrencies

Signatures