Brent crude oil hits new four year high
The price of Brent crude oil has climbed to a new four-year high today. Oil prices shot higher and have remained elevated ever since trading began overnight in Asia with Brent hitting a high so far of more than $81.00 a barrel. It comes after a meeting of OPEC and non-OPEC oil ministers in Algiers over the weekend, which concluded with a decision that there is no urgent need to boost crude output.
Clearly some speculators had expected the world’s biggest oil producers to potentially raise crude production levels after US President Donald Trump’s rant in a tweet last week, demanding that the OPEC should be trying to bring down oil prices. So, it is reasonable to assume that some speculators had established significant short positions around the then $80 resistance level ahead of the meeting. But when the OPEC and its allies refused to do what Trump had demanded, those short bets had to be abandoned quickly, causing prices to spike to a new four-year peak.
With Brent breaking out from its previous consolidation range to a new multi-year high, clearly the current trend is bullish and it could be gaining momentum. Thus, in the short-term we could see the dips being supported and for prices to gain further ground. In other words, the path of least resistance is currently to the upside.
Key support comes in around the old resistance range between $80.00 and $80.50. Near-term resistance could be around the upcoming round handles such as $82.00, $83.00 etc. and Fibonacci extension levels, such as $83.20/5 – this being the 127.2% extension of the downswing from mid-May.
We would only turn bearish on oil in the event prices go back to within their existing range with a clear signal that the bulls are trapped. Thus, a break below $78.25 – the last low pre breakout – would be the confirmation we would look for a bearish reversal. Alternatively, Brent oil may create a distinct reversal pattern at higher levels first.
The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex, commodity futures, or digital assets, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to FOREX.com or GAIN Capital refer to StoneX Group Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.
Please note that foreign exchange and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.
Contracts for Difference (CFDs) are not available to US residents.
FOREX.com is a trading name of GAIN Capital - FOREX.com Canada Limited, 30 Independence Blvd, Suite 300 (3rd floor), Warren, NJ 07059, USA is a member of the Canadian Investment Regulatory Organization and Member of the Canadian Investor Protection Fund. GAIN Capital – FOREX.com Canada Limited is a wholly-owned subsidiary of Stonex Group Inc.
Complaints are taken very seriously at FOREX.com. You can view our complaints procedure here.
© FOREX.COM 2025