Market Analysis: The Price of Brent Oil Reaches the Level of Resistance

Since the beginning of the month, the price of Brent crude oil has risen by about 10% — this July could be the best month since June 2022. Yesterday, the price of Brent exceeded USD 82, for the first time since April.

Among the drivers of oil price growth may be:

• production cuts by Saudi Arabia;
• restriction of export from the Russian Federation;
• expectations of new measures to stimulate the Chinese economy;
• summer growth in demand for gasoline and aviation fuel in the US.

However, technical analysis tools give arguments to suggest that the July rally may slow down, as:

• the price of Brent oil on the daily chart has reached the moving average with a period of 100, which may attract traders to open short positions;
• the price of Brent oil has reached the upper limit of the channel (shown in red).

The effect of these two factors of resistance may appear as early as tomorrow at 17:30 GMT+3, when the weekly data on oil inventories in the US will be published.

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