Brent Crude Price to Trade between $70-$80/BBL in Near Term
On both weekly and daily time frame, Brent crude price is not showing any clear trend. The price has stuck in a range for the time being, suggesting bullish and bearish factors counterweighing each other.
On the bullish side, ongoing geopolitical tensions in the Middle East is providing good support to the prices. Nevertheless, concerns surrounding economic growth and weak Chinese oil demand is keeping the price under control. Chinese crude oil imports fell in September because of weak refinery margins and planned shutdown of several refinery units for maintenance. Ample spare crude production capacity with the Middle East players is also keeping buyers from becoming too bullish.
Considering the near-term fundamental and technical levels, we expect Brent crude price to trade in the range of $70-$80/BBL in near term.
