Oil prices inch higher as attention shifts to the Middle East.

FUNDAMENTAL OVERVIEW:

On Tuesday, oil prices slightly increased due to ongoing uncertainties in the Middle East, creating market tension. However, concerns lingered that central banks might maintain higher interest rates for an extended period to combat inflation, potentially dampening energy demand and limiting gains.

Ongoing tensions in the Middle East have sustained elevated prices, with the U.S. and Jordan pushing for a ceasefire in the Gaza Strip. Senior mediators are set to resume discussions on an Israel-Hamas truce, while the looming threat of an Israeli ground offensive in Rafah adds to the complexity of the situation.

On Tuesday, the United States anticipates releasing inflation data, followed by British inflation and Eurozone Gross Domestic Product data expected on Wednesday.

Later, on Tuesday, the United States is scheduled to release data on crude inventory, and analysts project an average increase of approximately 2.6 million barrels for the week ending February 9th.

The monthly oil market report from the Organization of the Petroleum Exporting Countries (OPEC) is set to be released on Tuesday. However, a significant decision awaits in March when OPEC+ (including Russia) will determine whether to extend voluntary cuts in oil production.

BRENT CRUDE OIL TECHNICAL ANALYSIS DAILY CHART:

Technical Overview:

Brent Crude Oil is currently trading within an up channel.

Brent Crude Oil is positioned above all Moving Averages (SMA).

The Relative Strength Index (RSI) is in the Selling zone, while the Stochastic oscillator suggests a Positive trend.

Immediate Resistance level: 82.63

Immediate support level: 81.54

HOW TO TRADE BRENT CRUDE OIL

After a downward trend, Brent Crude Oil consolidated within a range. Eventually, it found support and began to rise, breaking through its resistance zone. It is heading towards its second resistance zone, prompting us to consider initiating a buy-on-dip strategy from this point onward.

TRADE SUGGESTION- LIMIT BUY– 82.09, TAKE PROFIT AT- 83.53, SL AT- 81.33.