Crude Oil Analysis: Oil Bulls Target $70
Oil Price Analysis and News
- Oil Bulls Look to $70 Target
- Brent Crude Technical Outlook
- Oil Impact on FX
Oil Bulls Look to $70 Target
Amid the continued improvement in risk sentiment as trade war tensions ease and with Saudi Arabia pledging to take aggressive action to curb production, Brent crude futures saw its largest weekly gain since the beginning of the year, rising over $6/bbl. Alongside this, the rally in oil prices has seen the futures curve move into backwardation, consequently maintaining the bullish and thus raising the scope for a move towards $70/bbl. Elsewhere, among the catalysts that have also underpinned oil prices in recent months have been the sanctions that the US have placed on Iran and Venezuela.
Brent Crude Technical Outlook
Having made a firm break above the 38.2% Fibonacci retracement, focus is now on for a test of the 50% Fibo at $68.45/bbl, whereby a closing break above could see Brent at $70. Although, with the relative strength index hovering near overbought territory, there is a potential for a short-term pullback.
Oil Impact on FX
Net Oil Exporters: These counties tend to benefit when the price of oil rises. This includes RUB, CAD, MXN, NOK.
BRENT CRUDE PRICE CHART: Daily Time Frame (Apr 2018 – Feb 2019)
--- Written by Justin McQueen, Market Analyst
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