BRN on track to hit $85.00

An oil prices are set to continue its fifth week of consecutive gains, following the strong economic data in the US (2.4% GDP in Q2 vs 1.8% expected), an announced stimulus by the Chinese government to boost its struggling economy and a potential for the OPEC+ to further cut the supply. 

The bulls have managed to push the BRN – daily towards the $85.00/bbl. A potential consolidation level might form at around $82.00-$84.00/bbl. The Relative Strength Index’ (RSI) proximity to 70 may signal a potential technical pullback.

The $85.00 psychological level might be tested in anticipation of the OPEC+ online meeting on 4^th of August.

The BRN – daily may climb over $85.00 – the level last seen in mid-April, if:

• The OPEC+ hints that global demand is still not strong enough to soak up global supplies, and further production cuts may be necessary.

On the other hand, the BRN – daily may further consolidate at it’s current level or even be dragged down to the previous cycle high around $81 or even the psychologically-important $80/bbl mark if:

• OPEC+ members assess the supply-demand dynamics as supportive enough for prices, with Saudi Arabia ending its voluntary cuts.