Market Analysis: The Price of Brent Oil Reaches the Level of Resistance

<img src="https://fxopen.com/blog/en/content/images/2023/07/brent-oil.jpg" alt="Market Analysis: The Price of Brent Oil Reaches the Level of Resistance" /><p>Since the beginning of the month, the price of Brent crude oil has risen by about 10% — this July could be the best month since June 2022. Yesterday, the price of Brent exceeded USD 82, for the first time since April.</p><p>Among the drivers of oil price growth may be:</p><ul><li>production cuts by Saudi Arabia;</li><li>restriction of export from the Russian Federation;</li><li>expectations of new measures to stimulate the Chinese economy;</li><li>summer growth in demand for gasoline and aviation fuel in the US.</li></ul><figure><img src="https://lh6.googleusercontent.com/cnqdOl-hFaGlrbKViv95EJQMLSGiWPpXTWzZbUvQk6551hlS3r19sKiaG_nAwZXyN8nYli1MsbBNkrRL69KI2XoD2lu_eq2Cp16HsLw7MwhgpYgAonz2ftWQquLvQEnSqyGUADDuYJy3fgIh6NztKAo" alt="Market Analysis: The Price of Brent Oil Reaches the Level of Resistance" loading="lazy" /></figure><p>However, technical analysis tools give arguments to suggest that the July rally may slow down, as:</p><ul><li>the price of Brent oil on the daily chart has reached the moving average with a period of 100, which may attract traders to open short positions;</li><li> the price of Brent oil has reached the upper limit of the channel (shown in red).</li></ul><p>The effect of these two factors of resistance may appear as early as tomorrow at 17:30 GMT+3, when the weekly data on oil inventories in the US will be published.</p>