Oil is on the rise following last week’s OPEC report release

Brent oil prices closed the previous week with steady growth amid the OPEC report release.

Brent was on the rise at the end of the week following the OPEC report

The oil market experienced high volatility last week, resulting in a rise by the end of the week. According to the published OPEC monthly report, the outlook for global economic growth in 2024 and 2025 remained unchanged, at 2.8% and 2.9%, respectively. The outlook for increased global oil demand in 2024 also remained unchanged compared to last month’s estimated 2.2 million barrels per day.

Last week, the US oil stock reports released by the American Petroleum Institute (API) and the Energy Information Administration (EIA) showed opposite trends. According to the API data, oil stocks decreased by 2.42 million barrels, while the EIA report demonstrated a stock increase of 3.73 million.

The oil market positively responded to the OPEC neutral report, which confirmed its previous forecasts. Following last week’s steady growth, this week’s outlook for the oil market appears moderately optimistic.

Brent technical analysis

The quotes are trading within a descending price channel on the daily chart. However, Brent oil prices are currently experiencing upward momentum, which faced active resistance at 83.00. The quotes are now trading slightly below 82.00. A rebound from the 83.00 resistance level might be followed by a downward correction, with its potential target at the 80.00 level.

The 83.00 mark is currently a critical local resistance level. If the price continues to rise after a downward correction and closes higher, this might indicate a reversal and the beginning of a new daily uptrend with the first target at the 84.50-85.00 area. The ascending scenario could be invalidated after the oil price secures below 80.00.

Technical analysis of the Brent oil chart

Summary

Brent oil quotes are experiencing high volatility and may attempt to maintain their upward trend following last week’s monthly OPEC report.