The commodity market started the week with a new wave of selloffs. The price of a barrel of Brent crude decreased to 80.65 USD.
Investors began reducing long positions on Friday amid uncertainty in the Middle East.
This week, the monthly reports from the International Energy Agency and OPEC are expected to be released. These documents will hold fresh assessments of the situation in the oil sector and, possibly, forecasted supply and demand parameters.
Also, the market eagerly awaits the latest inflation statistics from the US. This is one of the key indicators in shaping the Fed’s monetary policy, which is also significant for the oil market.
Brent technical analysis
On the H4 chart, Brent has completed an upward impulse reaching the level of 81.89. Today, the quotes might correct to 80.37. After the correction is completed, a new wave of growth to 84.00 could begin, from where the trend could continue to 87.87. Technically, this scenario is confirmed by the MACD indicator. Its signal line is below zero and strictly directed upwards.
On the H1 chart, Brent has completed an upward wave to 81.89. Today, a correction to 80.37 is forming. After the price reaches this level, a wave of growth to 81.89 could follow. A breakout of this level could open the potential for a rise to 84.09. This is a local target. Technically, this scenario is confirmed by the Stochastic oscillator: its signal line is below 20 and strictly directed upwards. The indicator is expected to renew the highs.
