Brent Crude – Oil edging higher again after recent positive developments

• Oil turns higher after brief pullback
• EIA reports small draw of 0.7 million
• 200DMA could provide next test of resistance

Oil prices have been creeping higher throughout the European session after bouncing back a little on Tuesday.

Output curbs from Saudi Arabia and Russia appeared to have got things moving but it may be the better inflation data that we’re seeing that has enabled it to push on after two months of consolidation. We’ve seen some volatility around the inventory data from EIA today after a smaller draw was reported but the price has largely returned to where it was trading pre-release.

Brent holds above prior range highs

Since breaking above the recent range highs late last week, oil prices have been a little choppy although importantly they have held above that prior range and, in the case of Brent crude, seen support around the previous highs.

That could be viewed as a bullish technical signal, although that will naturally depend on a number of other factors including the economic data and what producers are doing. Both have been favorable for prices recently, helping Brent break back above $80 for the first time in almost three months.

BCOUSD Daily

Source – OANDA on Trading View

From a technical perspective, Brent rebounded quite quickly after pulling back from last week’s highs. The rotation occurred slightly ahead of the 38.2% Fibonacci retracement level and the 55/89-day simple moving average band which, if followed by new highs, could be a very bullish signal following a very significant breakout a couple of weeks ago.

The next big test could come around the 200/233-day SMA band around $82.50-$84.

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.