Brent extends rebound after Saudi-Russia supply cuts

Brent is enjoying a positive start to July, thanks to recent supply interventions from Saudi Arabia and Russia as well as the third weekly drawdown in US stockpiles.

Brent is now trading back above its 50-day simple moving average (SMA) for the first time since April, and is now testing a key resistance level from its downtrend since June 2022.

However, note that its previous foray beyond the 50-day SMA, following the early April OPEC+ shocker, proved short-lived.

Recession fears have since dragged the global benchmark, though strong support has been found around the $71.50 mark.

Brent bulls may yet have their day on further evidence that the expected global deficit is truly materialising, which in turn may keep recession fears at bay.