Brent Will Reach $95

Brent Will Reach $95

2022-12-15 • Updated

What is happening?

The global energy crisis spreads around the globe. At the end of December, XBR/USD exceeded $80 per barrel for the first time since November, and in January, it even exceeded $85, also for the first time since November. On Friday, January 14, the price has reached $86, the highest point since October 2018. 

Reasons for XBR/USD growth

It becomes evident that the possibility of additional supply of oil on the market in the short term may be less than previously thought due to significant underinvestment in the sector over the past six years.

At the end of last year, Russian oil companies stated that they were operating at the limit of their production. Moreover, OPEC + potential for production increase could be much less than the 4 million barrels per day growth planned in 2022. 

According to the International Energy Agency data, the current shortage of supply in the oil market is 3 million barrels per day, and the expected growth in demand this year is 3.4 million barrels per day.

The second factor is that the Omicron strain is much milder despite being more contagious and may not lead to severe and long-term lockdowns.

According to these facts, there is a high probability that the deficit will remain in the short term.

Technical analysis

XBR/USD daily chart

XBRUSDDaily.png

XBR/USD has been moving in the ascending channel since March 2020. At the moment, it is a moment of truth for XBR/USD. If the price manages to hold above $85.5 for at least two days, it will reach the channel's upper border at $95, which is 161.8 Fibonacci level, without any resistance.

Otherwise, the price might head towards the bottom border of the channel. In this case, targets will be at $79, $77, and $75.5, which are 61.8, 50.0, 38.2 Fibonacci levels, respectively.

Similar

Oil Market Outlook
Oil Market Outlook

Oil prices rebounded slightly on Friday but are still expected to show losses for the week due to concerns about slowing growth in the US and China. US crude futures rose 2.7% to $70.41 per barrel, while the Brent contract increased by 2.5% to $74.33 per barrel.

China’s rebound and energy prices
China’s rebound and energy prices

China's economy is rocketing. On the other hand OPEC+ countries take the decision to cut the production. What will be the impact on the oil price?

Latest news

Gold’s Next Move Could Be Huge!
Gold’s Next Move Could Be Huge!

Let's dive into the world of gold. Currently, the price of gold, represented by XAUUSD, is stuck in indecision, hovering around the $1,975 mark. The market is anxiously awaiting two important factors: the release of the Federal Reserve's meeting minutes and the extension of the US debt ceiling.

What to Trade in June
What to Trade in June

Hey guys, this is the last full trading week in May, and many forward-looking individuals like myself are already preparing themselves to seize whatever opportunities June may have in store. On this note, I will review a few commodities that have satisfied my quest for swing-trading opportunities in the coming month. Follow me!

Will GBP Recover Now?
Will GBP Recover Now?

The Bank of England (BoE) has dramatically shifted its economic forecasts. They no longer expect a recession in the UK and have upgraded their growth projections. This year, the BoE predicts GDP growth of +0.25%, a significant improvement from previous expectations. Next year's forecast is even more optimistic, with a projected growth of 0.75%.

Deposit with your local payment systems

Feel the Team Spirit

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera