Oil supported after EIA lifts its forecasts
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FXCM's Brent crude CFD, UKOil is trading in its bullish channel between its upper blue and red bands. Moreover, its momentum-based stochastic is in its upper quintile (green rectangle), denoting a strong upwards momentum. The longer the stochastic maintains this position the greater the chances of higher prices ahead.
The US Energy Information Administration has raised its forecasts for 2023 and 2024. It expects Brent to average $85/barrel in 2023 and $81/barrel for 2025. These are increases in forecast of 2.5% and 5% respectively. Expectation for West Texas Intermediate are similar.
The higher forecasts come after OPEC+ announced output cuts earlier this month.
Russell Shor
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.
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