Brent Crude Oil Consolidates Ahead of OPEC+ Meeting
The ATR indicator on the XBR/USD chart has dropped to its lowest level since early autumn, signalling reduced volatility. This likely reflects market participants awaiting announcements from the OPEC+ meeting scheduled for 1 December.
Overall, Brent crude prices remain under pressure due to:
reduced tensions in the Middle East, with reports this week confirming a ceasefire agreement between Israel and the Lebanese militant group Hezbollah;
news of rising crude oil inventories in the U.S.;
forecasts of slower oil demand growth from China in 2025.
On the other hand, the $70-71 range serves as strong support, marked by key lows from 2023-2024.
From a technical analysis perspective, the fluctuations in XBR/USD oil prices are forming a pattern resembling Andrews Pitchfork, although it is not an exact match.
Key observations:
The central line has shifted from support to resistance, as indicated by the arrows.
The lower line is preventing the price from breaking the year's lows.
If the OPEC+ meeting brings no surprises, the period of reduced volatility may persist, with Brent crude prices fluctuating within this range.
Read more: https://fxopen.com/blog/en/oa-brent-crude-oil-consolidates-ahead-of-opec-meeting/
Text source: Forex Trading Blog
