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Brent bulls halted from reaching $90, for now

Brent bulls halted from reaching $90, for now

Brent is taking steps towards being restored to $90.

Having found support at its 50-day simple moving average (SMA), this week's recovery in the global oil benchmark has apparently been enabled by the:

  • softer US dollar
  • declines in US stockpiles

Brent is now on the cusp of its first weekly advance in 3 weeks.

For the present moment, Brent bulls are apparently paying little heed to concerns over slowing US growth (lower demand for oil), and the threat of higher-for-longer Fed rates, in light of yesterday's (Thursday, April 25th) US GDP release.

However, from a technical perspective, Brent's advance is currently being halted at its 21-day simple moving average, as markets await the release of a key US inflation data.

Brent may yet retain the $90 handle before the weekend if shown lower-than-expected PCE Deflators, along with a bullish outlook out of the oil majors.



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