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Brent Crude – Momentum wanes as oil trades around 2023 highs

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  • Stalling around 2023 highs
  • Divergence a sign of waning momentum

Oil prices have stabilized again today after another choppy, albeit broadly bullish, start to the week.

They’re now trading around their highest levels for the year and you have to wonder whether the recent announcements from Saudi Arabia and Russia, combined with better economic prospects, will be enough to lift the price to new 2023 highs, and above $90 in the case of Brent.

Are we seeing some profit-taking?

One thing that is notable is the rally of the last couple of weeks has been accompanied by dwindling momentum.

While not necessarily a bearish indicator in itself, it does suggest we may be seeing some profit-taking on approach to those highs and ahead of the CPI report. That could change after the release if we see a really promising report but for now, that divergence is undoubtedly a red flag.

BCOUSD Daily

Source – OANDA on Trading View

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Craig Erlam

Craig Erlam

Former Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary.

His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News.

Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
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