The Brent crude oil price has continued its bullish trend as investors focus on the rising global demand. The price rose to a high of $122.17, which was the highest point since May 23rd. It has risen by more than 26% from the lowest level on May 16th. The price remains below the year-to-date high of $137. The WTI price is trading at $120, which is lower than the YTD high.
Crude oil prices are still at elevated levels as investors focus on a major warning by one of the biggest traders in the world. In a statement this week, the CEO of Trafigura said that oil prices could go parabolic soon. He warned that prices could surge above $150 as demand continues rising and Russian supply takes a hit.
Oil demand is expected to keep rising as the Chinese economy reopens. This is evidenced that the country’s total exports rose by over 16.9% while imports rose by 4.1%. Its total trade surplus widened to over $78 billion in May, signalling that the economy is doing significantly well.
Meanwhile, gasoline prices are still soaring in the United States. Analysts believe that the average gasoline price in the US will reach $5 on Friday. This is a record level considering that prices were averaging $4.5 on Monday this week.
Brent crude oil price prediction
In my previous oil forecast, I wrote that the uptrend to $130 was intact. The daily chart shows that the Brent crude oil price continued rallying this week. The price is trading at $122.22, which was the highest point since March. It has surged above the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has moved close to the overbought level of 75.
The price is slightly above the key support at $114.96, which was the highest point on April 18th. Therefore, the outlook of crude will keep rising as investors target the year-to-date high if $137. A move below the support at $114 will invalidate the bullish view.