Brent crude oil price has been on a tear for the past couple of weeks. The price has surged to its highest level in 3 months. The latest analysis reveals that Brent oil price is retesting its 200-day moving average. This is the first retest of the key moving average since August 2022.
The price of the British benchmark appears to have found strong support below the $72 level. This level has resulted in multiple bounces in the past few months. The same level was revisited at the end of June 2023 but the bulls defended it once again.
Brent Oil Price Soars To Fresh 3-Month High
After a strong start to the week, Brent crude extended its gains on Tuesday. Till press time, the UK benchmark was traing at $82.65 per barrel. This is the highest level for the commodity since April 25 and hence translates into a fresh 3-month high.
The recent surge in Brent crude oil price can be attributed to the decrease in output by Russia and OPEC. According to the latest reports, the Russian oil export has hit its lowest level in last 6 months. The proposed economic support measured in China are also acting as strong tailwinds for the global oil prices.
Brent Crude Oil Price Forecast – August 2023
It is quite clear from the follwing chart that Brent Oil is currently retesting its 200-day moving average. This is the first retest in the last 11 months. A reclaim of this leve would unlock further upside till $86.67 which is the next major resistance as visible on the chart.
Brent crude oil price prediction will remain bullish as long as it holds the $78.5 level. This level could be retested in the coming weeks if the price gets rejected from 200-day MA. This week’s FOMC meeting in the US will be a major event affecting the price within next 48 hrs.
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