OPEC+ Production May Pump Oil to 101$

Key Fundamentals for Brent Oil

Strong US Dollar and weakening global economies supported the downtrend of Crude oil. Whereas surprisingly low US inventories data supported a short-term uptrend of Brent crude, comforting the price to hit $90 this week.

Global recession remains the main spotlight of the stage in the current market conditions. Supply terms of crude oil will now play a major role in Brent oil’s price movement. OPEC+ meeting scheduled on October 5 will be on the watch, as the cartel suggest a production cut of 100,00 barrels per day (bpd). The meeting scheduled for the next week will mainly be focused on maintaining the cartel’s fair oil price, suggesting a higher cut than the expected 100,00 bpd.

Based on the expectations of the US Labor data releasing next week further decline of the US Dollar Index is anticipated. Conjunction of these data tip off that the market is about to experience a rally of oil prices.

Technical Analysis and Price Forecast

Daily Brent Oil chart demonstrates signs of a strong squeeze inside a descending triangle. Since mid-June 2022 oil has been on a steep decline forming lower lows and lower highs, forming a wedge pattern.

Brent once again retested the upper edge of the descending triangle, although the bullish run is yet to be confirmed. The confirmation is set under a breakout from the wedge and closing of the price above $91.60. If that is confirmed, then we expect the price to move further to $98 and $101.