The Best Investment Manager’s Analysis: Brent Crude Oil Prices Recover on Potential “Maximum Pressure” on Iran

As the world’s best investment manager and financial market’s journalist, I am here to provide you with the latest insights on Brent Crude oil prices. Despite a recent slide in prices due to US tariffs on China, there is hope on the horizon. The US is set to issue a directive aimed at reinstating “maximum pressure” on Iran, which could impact global supply and contribute to the recovery in Oil prices.

Additionally, OPEC+ has maintained its current production policy, with plans to gradually increase supply over the next 18 months depending on market conditions. This stability in production policy could help support prices in the long run.

OPEC + Policy Remains Unchanged

Following their recent meeting, OPEC+ has decided to keep its production policy unchanged. They are planning to gradually add around 2.2 million barrels per day to supply over the next 18 months, starting in April. This decision, along with the shift to favoring new data sources like Kpler, OilX, and ESAI, reflects a cautious approach in the face of ongoing trade uncertainties.

Looking Ahead

Market participants will now be focusing on the demand side of the equation, with API crude oil inventory data for the week ending January 31 on the horizon. The data is expected to show an increase of 3.17 million barrels, slightly higher than the previous week’s increase.

Technical Analysis – Brent Crude

From a technical analysis perspective, Brent Crude oil prices have found support at the 100-day moving average. The recent bounce off this level has seen prices trade around 0.84% higher on the day, nearing the $77/barrel mark.

Looking at the four-hour chart, the bearish trend is still intact, but there are signs of potential bullish momentum building. A break above the recent swing high at $77.68 could signal a shift in structure, potentially pushing prices towards the $80/barrel mark.

Support Levels:

• $76.35
• $75.00 (psychological level)
• $72.38

Resistance Levels:

• $77.68
• $78.43
• $80.00 (psychological level)

Overall, the combination of geopolitical factors, production policy decisions, and technical analysis signals suggest a cautiously optimistic outlook for Brent Crude oil prices. Stay tuned for further updates as the market continues to evolve.