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Brent Crude Oil Rise, Reloading Annual Highlight Recharge


Brent Crude Oil News and Analysis

  • Falling crude stocks, blocked Iran nuclear deal and Putin’s gas payment requirement send oil higher
  • OPEC + to meet on 31 Marchst set output targets for May
  • Brent Crude Oil: Technical Levels to Consider

Brent crude oil prices continue impressive run

Brent crude is trading higher today due to declining oil inventories, the upcoming OPEC + meeting and the overall boost for the energy sector as a result of Putin’s announcement to “unfriendly nations” that future gas purchases must be paid for in Russian rubles.

While Putin’s comments mainly affected European natural gas prices, it appears to have supported the overall energy complex, as petrol, heating oil, natural gas and WTI and Brent crude oil are all experiencing higher prices today.

Oil shares show a drastic decline as demand pushes

Yesterday, the Energy Information Agency (EIA) published its latest weekly petroleum status report, which covers data up to the 18th.ste of March. Most importantly, crude oil inventories experienced a massive decline of 2.508 million barrels when inventories were forecast after an increase of 0.114 million. U.S. crude oil inventory currently stands at 413.4 million barrels and is 13% below the 5-year average for this time of year.

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What’s next on the oil agenda?

Oil traders now turn their attention to the OPEC + meeting on 31 Marchst where the group will discuss their output target for May. The existing agreement to increase oil output by 400,000 barrels per day is largely expected to continue as planned, as has been the case in previous meetings.

Recent meetings have been unusually short in duration, but this month’s agenda may require greater involvement amid large-scale sanctions against Russian oil imports. OPEC + has previously stated that the large price increases should not be attributed to OPEC’s policy, but rather as a result of fears of supply shortages.

In addition, the Iran nuclear deal has come to a standstill in recent weeks with little progress reported. As such, hopes of a return on Iranian oil supplies are likely to support current, rising oil prices.

Brent Crude Oil Daily Chart

Brent Crude Oil Rise, Reloading Annual Highlight Recharge

Source: TradingView, prepared by Richard Snow

Brent Crude Oil Prices has retreated significantly after reaching its recent high of around $ 139. A reflection of the 50 simple moving average along with the appearance of a Morning Star candlestick pattern leads the way for a bullish continuation.

A $ 139 retest remains constructively above $ 113. Failing to trade above $ 113 opens the door to 97.20 as the next level of support.

— Written by Richard Snow for DailyFX.com

Contact and follow Richard on Twitter: @RichardSaowFX

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