Fresh Multi-Month Highs

As mentioned elsewhere, WTI & Brent futures have printed a little above last week’s multi-month highs.

• Our commodities team notes that upside comes from improved global demand forecasts and an escalation in attacks on Russian refineries, which adds to the tight supply and ongoing geopolitical tensions in the Middle East.
• Brent futures have started this week on a firm note. Price is trading higher and a bull phase remains intact. The contract has recently cleared resistance at $84.34, Mar 1 high, to confirm a resumption of the uptrend that has started Dec 13. $85.47, 76.4% of the Sep 15 - Dec 13 bear cycle, has been pierced. Clearance of this level would open $88.31, the Oct 20 ‘23 high. On the downside, initial pivot support to watch lies at $81.43, the 50-day EMA.
• WTI futures traded higher last week and this resulted in a break of resistance at $80.85, the Mar 1 high. The move higher confirms a resumption of the uptrend that has been in place since mid-December last year. Sights are on $81.70 next, a Fibonacci retracement point. A break of this level would open $84.66, the Oct 20 ‘23 high. On the downside, support to watch is $77.07, the 50-day EMA.