Crude oil price rebounded on Tuesday from the January low it hit in the previous session. Amid the bearish market sentiment, traders eagerly await OPEC+ decision during its meeting in the coming week.
Experts’ outlook on crude oil price was largely bullish for the better part of the year; an aspect that the market now appears to be defying. Following the Russian invasion on Ukraine, some analysts predicted that Brent futures – the benchmark for global oil – would rise further to $150 per barrel. At that point, the prices had surged to a 14-year high at $138.04 amid concerns over tight supplies.
However, that narrative has shifted in recent months with demand woes being a major driver in the oil market. In fact, crude oil price has since erased most of the year’s gains. On Monday, Brent oil dropped to its lowest level since 11th January at $80.98.
Granted, most experts remain bullish on the financial market. For instance, JP Morgan expects crude oil price to surge above the psychologically crucial level of $100 per barrel in the next couple of years.
However, in the short term, investors are keen on OPEC+ decision during the meeting scheduled for 4th December. After the surprise production cut during its October meeting, some analysts forecast even deeper cuts in the upcoming event. Indeed, this prediction explains the rebounding of crude oil price after dropping to its lowest level in over 10 months.
Brent crude oil price prediction
Amid the volatility experienced in the crude oil market, Brent futures remain below the 25 and 50-day exponential moving averages as seen on its daily chart. In the ensuing sessions, the bulls will be keen at defending the current support level at 83.21. Heightened concerns over the supply/demand imbalance may push crude oil price lower to 80.23.
On the upside, the asset will likely continue to find resistance along the 25-day EMA at 89.77. Even with further rebounding, the bulls will need to attract enough buyers to push Brent oil past 94.59 for the bearish trend to be reversed.