The current price of Brent crude oil, hovering around 82.55 USD per barrel, is experiencing a decline due to the uncertainty surrounding demand levels. The market is under significant pressure as recent statements from the US Federal Reserve have hinted at the possibility of sustained high-interest rates. This expectation is likely to hinder economic growth, leading to a decrease in fuel demand from American consumers.
Recent data indicating a drop in US consumer confidence has raised worries about the economy losing its growth momentum. The upcoming summer season, usually a peak period for fuel consumption, has seen rising stocks of petrol and distillates in the US. However, the demand seems to be lackluster, deviating from the usual seasonal trends.
The next OPEC meeting scheduled for early June is anticipated to result in the extension of production quotas into the second half of the year. This decision could have a significant effect on oil price movements, depending on the outcome of the meeting.
Analyzing the Brent H4 chart, the initial growth impulse has reached 84.24 and is undergoing a correction wave towards 82.02, nearing completion. A consolidation range above this level is expected, with potential growth towards 85.00 and possibly 88.00. The MACD indicator supports this bullish scenario, with a signal line below zero but pointing upwards.
On the H1 chart, after hitting 84.24 and correcting to 82.02, a consolidation phase is projected above this level. A breakout above this range could trigger a new growth wave towards 85.00. The Stochastic oscillator also suggests a bullish momentum, with the signal line above 20 and aiming towards 80.
The Brent crude oil market is currently facing challenges due to uncertainty in demand levels and economic growth concerns. The upcoming OPEC meeting could further impact price movements, while the technical analysis indicates potential growth above current levels. Investors and traders are advised to closely monitor these factors to make informed decisions in the volatile oil market.