Brent crude oil slid by 6.8% this week as investors anticipated the Israel-Hamas conflict to come to an end. At press time, the Brent crude oil is priced at $87.47 per barrel as Israel delays its invasion of Gaza.
At the start of the war, oil prices surged to October highs which was a 12.1% rally from the monthly lows. However, the price failed to gain strength above $93.
The Energy Information Administration reported a 1.4 million barrels increase in the US oil inventories last week. This news weighed in on the oil prices as it pointed towards a decrease in the demand for black gold. Investors also expect oil prices to remain somewhat stable due to the diplomatic intervention by the US and Saudi Arabia.
On Tuesday, The International Energy Agency released its World Energy Outlook report. The agency took notice of the increasing market share of clean and renewable energy products. Due to this, the agency predicts that the demand for non-renewable resources like oil, gas, and coal will see peak demand by 2030.
In contrast to a reduction in the oil demand outlook, China issued around 1 trillion yuan in supplementary bonds to invest in its manufacturing sector. This is likely to increase China’s demand for oil in the coming months. Currently, the price of Brent cure oil is 8.7% down from its yearly peak of $96.
Brent Crude Oil Price Prediction
The Brent crude oil’s recent rebound was short-lived as the price is trading in the red once again. This decline in the price can be attributed to the increase in US oil inventories. In the daily timeframe, the price sits 6.4% above the 200 MA level which lies at $82.4.
The $82.4 level might act as a dynamic support level for the price if the bulls fail to reclaim the $89 resistance level. A further breakdown below the key moving average will not only solidify the bearish Brent crude price forecast but might also trigger an 18.2% correction all the way to the $71.5 support level.
