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BRN recovers back closer to $90 after 3-day losing streak

BRN recovers back closer to $90 after 3-day losing streak

Oil prices have rebounded from this week’s low (at $84.47/bbl) to above the $86/bbl round number following the Fed’s decision not to raise interest rates.

Leaving the interest rates intact have provided the BRN bulls with an upward momentum as the market’s sentiment has shifted towards more risky assets.

As of now, investors expect the BRN to average at $90/bbl in 4th quarter of 2023, with an estimated high sitting at $103.57/bbl.

Markets are now paying close attention to any significant developments in the Middle East, as the risk of a wider conflict remains.

However, still murky macro-landscape of the Chinese economy may create downward pressure on oil prices.

Earlier this week, China’s Manufacturing PMI reading came in lower (at 49.5) than expected (50.2), underlining a potential economic slowdown.

On the technical side …

  • The 100-day SMA may offer immediate support once more, as it did in recent sessions.
  • The BRN price may continue to consolidate within $85-$90/bbl as investors await any significant developments to occur, either in the ongoing Middle East conflict, or for the global supply-demand equation
  • Relative Strength Index (RSI) is currently located at 46.11 (70 – Overbought, 30 – Oversold), underlining the indecisiveness of the wider market at the moment

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