Brent Recorded A 23% Increase Over The Third Quarter Of 2023. What To Expect Next?

By RoboForex Analytical Department

As expected, energy carrier prices saw a decline last Friday, marking the end of both the month and the quarter. This morning, Brent crude hovers around 92.44 USD per barrel.

Over Q3, crude oil prices surged by 23%, driven by reduced supply from Saudi Arabia, Russia, and the whole of OPEC. Improved demand prospects have also given the commodities sector robust support. The fundamental background suggests a rise in the price of black gold.

According to Baker Hughes, drilling activity in the US continued to decrease last week, with the number of active oil rigs dropping to 502 units (a decrease of 5 units).

BRENT Technical Analysis

On the H4 Brent chart, the price has made a movement to 94.23 within a wave of growth. Today the market is correcting to 89.40. After it is over, a growing wave to 97.00 is expected. This is a local target. From a technical standpoint, this scenario is confirmed by the MACD: its signal line has crossed the zero mark and continues to decline towards new lows.

On the H1 Brent chart, the price has performed a link of correction to 92.50 and a link of growth to 92.71. Today it has completed a wave of decline to 92.28. Currently, a consolidation range has formed around this level. Escaping it downwards, the price could go on correcting to 90.70. Next, a link of growth to 92.28 is expected (with a test from below), followed by a decline to 89.40. There the corrective wave might be over. Next, a wave of growth to 94.25 could start. Technically, this scenario is confirmed by the Stochastic oscillator: its signal line is aimed strictly downwards to the 20 mark.

Disclaimer

Any forecasts contained herein are based on the author's particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.