Brent rebounds; still set for record losing streak

Brent rebounded off the $72 psychologically-important support level this week to keep the global oil benchmark within the same trading range it has adhered to since early May.

Despite its recovery in recent sessions and a monthly gain of over 3% for June, Brent is still headed for a fourth straight quarter of declines – its longest losing streak on record.

Brent’s immediate upside also appears capped by its 50-day simple moving average (SMA), in light of the recession fears still swirling about oil markets.

Oil benchmarks are expected to remain subdued as major central banks press ahead with more demand-destroying rate hikes over the summer.

Until market fundamentals fulfil expectations for a meaningful deficit in 2H23, oil prices will be discouraged from celebrating pre-emptively as long as there’s still palpable angst over demand-side risks.