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Brent Crude Oil: quotes renew local highs

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  • Brent Crude Oil: quotes renew local highs

    Current trend

    Today, during the Asian session, Brent Crude Oil prices grow moderately, testing the level of 73.50 upwards and renewing local highs since August 2.

    The quotes are supported by growing concerns about a reduction in oil production in the United States after many fields in the Gulf of Mexico were forced to close due to Hurricane Ida. According to media reports, production in the Gulf has recovered by only 51% from the previous level.

    Another positive factor for oil was the OPEC report released on Monday. So, in particular, the cartel expects an increase in demand for energy in 2022 to 4.2M barrels per day, which is almost 1M barrels higher than previous estimates. An increase in oil demand in 2021 is expected to reach 6M barrels per day, which allowed the organization to increase oil production quotas by 150K barrels per day to an aggregate level of 26.76M barrels per day.

    Support and resistance

    Bollinger bands grow steadily on the daily chart. The price range slightly widens but not as fast as the “bullish” activity develops. MACD grows, maintaining a relatively strong buy signal (the histogram is above the signal line). Stochastic maintains a strong upward trend but is rapidly approaching its highs, indicating that the instrument may become overbought in the ultra-short term.

    Resistance levels: 74.00, 75.50, 76.91.

    Support levels: 73.00, 71.80, 71.00, 70.00.