Brent crude oil price predictions continue to remain negative this Monday after a colossal slide in the asset on Friday fuelled by economic fears and a rising US Dollar. Weaker demand is starting to take centre stage above supply concerns that emanate from the Russia-Ukraine conflict. The release of petroleum reserves from the US and the recovering output from OPEC + countries appears to nullify the conflict’s effect.
Of great concern to the market on the supply side was the production from Libya, which had fallen to as low as 100,000 barrels per day as per comments from Libyan oil minister Mohamed Oun. However, output has recovered to seven times that figure, even though Libya’s oil production remains far below its 2021 levels.
On the demand side of the equation, the new lockdowns in Beijing and other cities across China continue to fuel demand concerns. Lockdowns in the world’s largest importer of crude mean lower demand, as its thirsty industries are sent offline.
Also, rising interest rates in the US point to the continued strengthening of the US Dollar, which also benefits from safe-haven demand during this period of economic upheaval. Brent crude is down for a 5th day, trading 0.15% lower. This continues to keep Brent crude oil price predictions on the negative end of the spectrum.
Brent Crude Oil Price Prediction
The breakdown of the ascending trendline by last Thursday’s candle was followed by the deep bearish candle, which violated the support at 114.03. The active daily candle’s return move tested this price mark and was rejected, confirming it as new resistance. This scenario opens the door for a correction toward the 109.58 support (18 March high and 5 May low). Below this level, 106.11 (9 March and 19 May low) and 100.92 (psychological support) form additional targets for the bears.
On the flip side, a recovery of the bullish move requires a break of 123.61 (24 March and 9 June highs). This opens the door toward 131.86, where the previous high of 9 March is located. A further price advance makes 138.10 available. This is the location of the 7 March 2022 high.