Global oil prices rose to a two-month high on Friday, with Brent crude trading above $74 a barrel, as escalating tensions between Russia and Ukraine fueled market concerns.The recent uptick in hostilities, marked by Ukraine’s Western-supplied missile strike on Russian territory and Russia’s retaliatory launch of a ballistic missile, has added a heightened risk premium to the market.Investors are also keeping a close eye on the upcoming OPEC+ meeting on December 1st, where the producer group is expected to reassess its production plans.Initially, OPEC+ had outlined a gradual increase in production for 2024 and 2025, but sluggish global demand has prompted a reassessment.China, a major oil importer, continues to struggle with sluggish economic growth and subdued demand, further complicating the outlook for the oil market.
As a result, there is growing speculation that production increases may be delayed once again.
From a technical perspective…
Brent is trading above its 21- and 50-period SMA, suggesting potential bullish momentum in the short to medium term.However, the 100-period SMA is still well above the current BRN price level, suggesting a bearish trend in the longer term.The Relative Strength Index (RSI) is range trading, reflecting the market’s current state of uncertainty amid geopolitical escalation.On the downside, the 21-period SMA may provide immediate support, followed by the $71.56 key level, while on the upside, the $74.86 level may be the next key target for the oil bulls.More By This Author:Gold Reaches 1-Week High This Week: Nvidia Earnings Is Set To Move The Markets!? XAUUSD & BRN Are Under Pressure Amid Stronger Dollar
