Brent crude pulls back after a solid run higher

It looks as though the crude price is just pausing before making a fresh charge upwards.

The bigger picture in global oil supplies has become a little clearer in the last month. The initial fears over political stability in Egypt and ongoing access to the Suez Canal have now calmed down, even though there are still highly dissatisfied parties in Egypt. Further afield, oil supply from Libya is increasing after issues at one of the country’s oil terminals were cleared up. The conciliatory comments between Iran and the US might eventually lead to the current oil embargo being lifted. However, even if the relationship between these two countries did improve, the broader oil embargo with a number of countries would take some time to be voted through.

These fundamental changes to the supply/demand ratio should have prompted a weakening in oil prices, however the last couple of months have seen the Brent crude price move higher, adding more than 10% since mid-April. The price has been above the 50- and 100-day moving averages for over a month now, and Friday saw a break above the 200-day moving average too.

Daily Brent Crude chart

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.