Brent Crude – Oil testing the 200DMA for the first time since last summer

• A new three-month high
• Can Brent break the 200-day SMA?

Oil prices are trending higher again on Monday, building on the surge late last week and reaching their highest level in three months.

There have been a number of factors that have contributed to the gains recently, starting with the Saudi extension to its million barrel cut alongside Russia’s export reduction followed by data that could enable a soft landing in countries that are aggressively raising rates.

Brent hits new three month high

Not only has that taken Brent crude back above $80 a barrel, much to the relief of the Saudi’s, but it’s adding to those moves again.

It will be interesting to see how Brent responds around roughly $82.50-$83.50 where it is already seeing some resistance today. It may not have traded at these levels in almost three months but it hasn’t significantly breached the 200-day simple moving average since last summer.

BCOUSD Daily

Source – OANDA on Trading View

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