Comprehensive Brent Oil Analysis for December 6, 2023

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the BRENT OIL for 6th December 2023. 

Brent Oil Key Takeaways

• Disappointing OPEC+ meeting: The delay of this OPEC+ meeting and the new production reduction agreement are less than expected, highlighting the conflicts arising from different countries, and the role of production reduction measures in supporting oil prices has weakened. 
• Reduction is in trouble: Russian Deputy Prime Minister Novak said that OPEC+ countries are ready to further reduce oil production in the first quarter of 2024 to avoid speculation and limit fluctuations in global markets. At the same time, the increase in crude oil production in the United States, Brazil and other countries has always put pressure on oil prices. 

Brent Oil Technical Analysis 

Brent Oil Daily Chart Insights

• Stochastic Oscillator: The indicator sends a short signal, and then the market goes down. The downward trend of the current daily chart is clear, so we cannot go long at will. 
• Price Action: As expected by the market analysis on November 30th, oil prices started a downward trend after hitting the upper resistance. The pin bar suggests that the short forces have the upper hand. Today is going to be close to the previous low, so be wary of the probability of reversal. 

Brent Oil 1-hour Chart Analysis

• Stochastic oscillator: The indicator sends a short signal and enters the oversold range, implying that the short-term strength of the day has the upper hand. 
• Rectangular range: Oil prices fluctuated at low levels for nearly 2 trading days, while repeatedly testing the 33-period and 65-period moving averages. It did not form an effective breakthrough and then fell below the lower edge of the range. Oil prices need to wait for the daily support level below to break through before continuing to establish a subsequent downward trend. 

Ultima Markets MT4 Pivot Indicator

• According to the pivot indicator in Ultima Markets MT4, the central price of the day is established at 77.990, 
• Bullish Scenario: Bullish sentiment prevails above 77.990, first target 78.684, second target 80.070; 
• Bearish Outlook: In a bearish scenario below 77.990, first target 76.594, second target 75.901. 

Conclusion