Brent Crude Oil surges to new yearly highs of $92.57 as Saudi Arabia and Russia extend their production cuts till the end of 2023. On 1st September, the price of oil broke through the $89 resistance and now sits 3.72% above that level. On Wednesday, Brent oil price is trading at $92.42 per barrel, up 0.55% till press time.
The US CPI data for August was announced on Wednesday. The annual inflation rate rose for the second consecutive month to 3.7% in August, compared to the expected 3.6%. Analysts stated the recent increase in oil prices is the primary driver for the increase in inflation.
EIA Expects Oil Prices To Surge Further
The US Energy Information Administration (EIS) expects Brent crude oil prices to remain around $93 on average during the last quarter of 2023, up from the $88 forecast back in August. The agency also expects a decline in oil production of about 500,000 barrels per day in the second half of 2023.
OPEC did not change its demand forecast in its recent Monthly Oil Market Report. The cartel predicted a 2.25 billion barrels per day increase in 2024 as the demand for oil is expected to rise in the next year. It also reported an 8.97 million barrels per day production in Saudi Arabia in August, as compared to 9.99 million in June.
Brent Crude Oil Price Prediction
The Brent Crude price chart shows the price has gained strength above the $89 resistance level. The price of black gold has also broken above the 200 MA since July and is currently trading 12.2% above that level.
The Brent crude oil price forecast will remain bullish, provided the current bullish momentum sustains. In this case, I expect the price to see a 7.3% rally toward the $99 resistance level in the coming weeks. This outlook will be invalidated if the price breaks below the $89 level.
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