Brent crude oil continues its upward correction, trading near 74.00 USD

The Brent price is experiencing an upward correction, bolstered by investor optimism following the recent Fed rate cut. However, despite the current correction, the overall trend remains downward, and further declines are possible. For more detailed insights, read our Brent analysis and market outlook for today, 24 September 2024.

Brent forecast: key trading points

• US data: today, the market is anticipating the release of the API oil inventories data, which is expected to provide a significant indicator for the short-term direction of Brent prices
• Current trend: an upward correction of oil prices is underway within a broader downtrend
• Brent forecast for 24 September 2024: 75.00 and 70.00

Fundamental analysis

Brent prices are seeing a corrective rise after finding support in the demand zone of 68.00-68.50 USD. This price rebound is driven by the US stock market strengthening and growing investor optimism over the Federal Reserve’s shift toward monetary easing.

Today, all eyes are on the API’s report on oil reserves in the US, which could provide further news on Brent’s trajectory. A decline in inventories may offer short-term support for Brent prices, while an increase could generate a bearish signal, potentially accelerating the downtrend. Additionally, tomorrow’s report from the EIA will provide more clarity on the future Brent forecast.

Brent technical analysis

Brent continues to grow moderately, with current trading levels hovering around 74.00 USD. On the H4 chart, the market shows an upward correction, though the daily trend remains firmly downward. Once the correction concludes, we expect a potential downward reversal.

In the short-term Brent forecast, if prices remain above 72.00 USD, the correction could extend towards the resistance level at 75.00 USD. However, should the bears push the price below 72.00 USD, a decline towards the support area of 70.00 USD is likely to follow.

Summary

Brent crude is currently trading within an upward correction around 74.00 USD. The API oil inventory report could be a key influence on the next price move later today. Any inventory level shifts may provide short-term bullish momentum or reinforce the existing downtrend.