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Brent Crude Oil Market Update

1/23/2023 12:32 PM

Benchmark Brent Crude Oil prices are correcting at 87.00.

Quotes are gradually recovering against the backdrop of fundamental news: investors are reacting to the recent statement by the Minister of Finance of Saudi Arabia, Mohammed Al-Jadaan, made by him during his speech at the World Economic Forum (WEF) in Davos. The official said that for the first time in 48 years, his country is ready to consider proposals for international trade in currencies other than the US dollar. This statement supported the recent global de-dollarization trend, a support factor for the black gold market, creating an opportunity for more independent pricing to emerge.

Another factor of local support for oil prices was the statement by US Treasury Secretary Janet Yellen, who noted that the introduction of a price limit for petroleum products from the Russian Federation is a much more complicated process than the previously introduced limit on the cost of raw materials since there are a lot of their types, and each has a dynamic price, which makes it difficult to establish specific values, and it will take considerable time to develop the final rules. The new restrictions could be formalized as early as February.

On the daily chart, the trading instrument is moving within a downward corridor, approaching its resistance line at 87.30.

Technical indicators reinforce the buy signal by expanding the range of fluctuations: fast EMAs of the Alligator indicator move away from the signal line, and the AO oscillator histogram forms upward bars, rising in the buying zone.

Resistance levels: 89.30, 97.70. | Support levels: 84.80, 76.70.

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