Brent set to end 4-week losing streak

• Brent crude nears $80
   
• US recession fears ease, driving recent oil recovery
   
• US oil inventories are in decline for 6 weeks straight
   
• Oil market uncertainty persists amid demand concerns

Brent crude is edging back toward the crucial $80 per barrel mark, poised to break a four-week losing streak, although it still hovers near a two-month low.

The recent recovery is driven by easing concerns over a US recession and six consecutive weeks of declining US oil inventories, which have contributed to a broader risk rally in recent sessions.
 

However, the oil market remains on edge, with US recession fears and rising tensions in the Middle East continuing to influence prices.

While oil bulls have shown signs of optimism, their enthusiasm remains tempered by ongoing concerns about demand, as well as the looming supply-side risks.

From the technical perspective…

BRN is trading below key simple moving averages (21-, 50- and 100-period SMAs), underscoring a bearish trend on the mid-long-term horizon.

Relative strength index (RSI) is in the neutral zone (<30 – oversold; >70 – overbought), echoing the market’s overall uncertainty regarding the potential US recession and future demand for oil.

To the upside the $80.00/bbl maybe the key resistance/target level for the BRN bulls, while to the downside the $77.31/bbl may offer support if the oil bears try to regain the initiative.