As seen on the XBR/USD chart, Brent crude oil prices are hovering near last week’s highs this morning as market participants assess various influencing factors, including:
→ New U.S. sanctions on Iran, which are limiting its export capacity and tightening global supply, particularly to China.
→ Ongoing negotiations between the U.S., Ukraine, and Russia in Saudi Arabia, which could potentially lead to increased Russian oil exports.
→ OPEC+ plans to raise oil production starting in April.
Technical Analysis of XBR/USD
From a technical perspective, Brent crude oil is trading near a key resistance zone, which consists of:
→ A bearish Fair Value Gap (highlighted in purple).
→ The upper boundary of the descending channel.
→ The upper boundary of a narrowing triangle (shown in black), which can be interpreted as a Rising Wedge pattern.
The Rising Wedge may represent a corrective rebound within a broader bearish trend. If buyers fail to break through this resistance zone, Brent crude prices could resume their downtrend within the red channel.
Start trading commodity CFDs with tight spreads. Open your trading account now or learn more about trading commodity CFDs with FXOpen.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
