Forecast for crude oil: Brent to Fixate on Month – to – month OPEC Report

VOT Research Desk

Market Analytics and Considerations

Fundamental and Technical Detailed Analysis

Later today, the OPEC Monthly Oil Report (MOMR) will be the focus.

After the CPI fallout, dollar weakening appears to be decreasing.

wedge still in play as it rises.

The fundamental background of Brent crude oil

This Monday, Brent crude oil prices remained unchanged after rising last week on the back of falling U.S. inflation. Today’s monthly OPEC statement will be the main topic of attention for the oil markets because the October report highlighted sluggish world economy, lowering demand expectations, and reduced supply. According to an OPEC+ delegate, because OPEC+ countries as a whole have been underachieving production targets thus far in 2022, it may be necessary to once again revise quotas to much more correctly represent capacity.

In this morning’s trade, the U.S. dollar is rising as markets analyze last week’s economic statistics. Since then, Fed speakers have stressed the significance of the fight versus inflation, and they have stated that even though the rate of hikes in interest rates may have slowed down, the aggressive stance has not changed. In light of this, the USD may maintain its current level over the upcoming months.

There are basically minor events planned for today, aside from the OPEC report later this evening (see the economic schedule below), but given that the Fed’s Brainard is regarded to lean hawkish, she might underline the importance of addressing inflationary pressures.

Economic Activity Schedule

Analytical Parameters

The daily Brent crude price movement is still above the critical 95.00 support level while still being contained by the emerging rising wedge . In the near future, this level may be retested in the direction of the wedge’s lower bound.

Daily Moving Averages

Candlestick Patterns

Indication Bearish reversal

Reliability Medium

Description This formation, which appears during an uptick, is distinguished by a sizable black real body that engulfs a white real body (it need not envelop the shadows). This shows that the upswing has been harmed and suggests that the bears might be getting more powerful. The first two candles of the Three Outside patterns are also the Engulfing signal.

It is a significant reversion signal.

Elements that are boosting the dependability of this signal include:

• The genuine bodies of the first and second candlesticks are, respectively, quite little and enormous.

• The trend is observed following a lengthy or extremely quick move.

• On the second black candlestick, there is a lot of intensity.

• More than one actual body is enveloped by the second candlestick.

Key resistance levels:

Key support levels:

Technical Indicators