Brent crude oil price rose 0.83% on Friday in a bullish continuation. Nevertheless, the bulls were still unable to break above the weekly highs that were set on Wednesday. Technical analysis shows that the price is about to hit a supply zone, which could be hard to overcome.
Brent oil price had been in a strong uptrend since hitting its monthly lows around $72.33. However, Angola’s exit from OPEC caused a pullback on Thursday. The African country was responsible for 1.1 million BPD of production of black gold compared to the overall production of 28 million BPD of the whole oil cartel.
At press time, the futures contracts for UKOIL were changing hands at just a few cents below $80. The Red Sea trade disruptions continue due to persistent attacks of Houthis on ships. As a result, many freight movers have already stopped operations in the region.
Brent crude prices were in a downtrend at the start of this month due to global demand concerns. However, those concerns seem to have been offset by the ongoing trade disruptions in the Red Sea. In addition, the improvement in the global macroeconomic conditions and cooling down inflation in the West are also reasons behind the uptrend.
As visible in the following chart, Brent crude oil price is facing resistance from the downward trendline. Above this trendline lies the 200-day moving average at $81.77. Due to this confluence, it could be very hard for the bulls to break above $83.33 resistance which is marked as a black line.