Brent crude oil price prediction: Bullish momentum points to continued strength near highs

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Brent crude oil gains 1.93% today

Highlights

Drone strikes have halted Saudi Arabia's East-West pipeline, disrupting exports and tightening global oil supply conditions.
China's renewed crude import demand and reduced U.S. Strategic Petroleum Reserve releases are compounding current supply constraints.
Brent crude trades near $111.38 with strong bullish momentum, overbought signals, and a projected 1-day range of $109.79 to $113.52.

Supply disruption and China demand reinforce Brent gains

Drone attacks have forced Saudi Arabia to temporarily shut its East-West pipeline to the Red Sea, disrupting oil exports and tightening short-term supply conditions, according to Focus Economics. This immediate supply interruption from one of the world's major producers provides firm support for Brent crude. Additional tailwinds come from China’s rebound in crude imports, which adds fresh demand, and a slowdown in U.S. Strategic Petroleum Reserve releases, further constraining supply. Together, these factors align with the observed strength in the oil market.

Overbought signals and mixed momentum confirm volatile high

On the technical front, XBR is trading above the MA-20 at $110 and the MA-50 at $108.62 on the hourly chart, while remaining above the MA-200 at $93.89 on the daily chart. The Ichimoku Kijun line at $109.47 acts as immediate support. Intraday volatility is elevated, with the session holding near highs and a small positive gap of 0.06. Among momentum signals, MACD is on Buy, ADX is neutral, and RSI is also signaling Buy. Both CCI and Bull/Bear Power are confirming overbought levels and strong buyer dominance, while Stochastic RSI issues a Strong Sell, revealing divergence among oscillators. The Awesome Oscillator supports the ongoing move higher.

Upside bias dominates as bulls eye consolidation near highs

Looking ahead over the next trading day, the projected range for XBR is $109.79–$113.52, reflecting typical volatility relative to current levels. There is a 71% probability of further upside continuation and a lower 29% probability of a pullback. The baseline scenario envisions consolidation near current highs. Bullish momentum may see price test above resistance and extend gains, while a failure of support at $109.47 could prompt a deeper correction.

Viktoras Karapetjanc, expert at Traders Union, sees Brent crude well supported by strong macro and fundamental drivers. He believes the immediate supply shock from the Saudi pipeline, rebounding Chinese demand, and reduced U.S. reserve releases create a bullish environment. Technicals confirm robust buyer momentum above key moving averages. The analyst expects consolidation near highs, with further upward potential if support holds. "With fundamentals and sentiment in sync, I favor continued strength in Brent crude as long as supply risks persist," says Karapetjanc.

Earlier, analysts noted that upward pressure on Brent crude was fueled by geopolitical risks and elevated energy prices intensified by supply concerns. The current disruption in Saudi pipeline flows and strengthening technical signals add to the bullish backdrop, with traders advised to monitor $109.47 as a key support level for shifts in intraday momentum.

Source of Data: XBR Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.