BRENT CRUDE OIL PRICE KEEPS RISING, HITS TWO YEARS HIGH AT $76 PER BARREL.

The

price of Brent crude oil has added more than 11% since May, hitting two

years high last week. Brent crude oil's price has gained over 50% since

the start of the year, reflecting an economic recovery that is in full

swing.

Why Brent Crude Oil keeps rising

The

burst of the economic demand, supply, and demand dynamics have

supported the rise in the price of Brent Crude oil. Data from the Energy

Information Administration (EIA) showed that production had fallen

almost 1% week-over-week for the week, while gasoline demand rose by 1%.

Organization

of the Petroleum Exporting Countries (OPEC) and OPEC partner countries

limited the supply of oil at the beginning of the year. Furthermore,

OPEC is considering boosting production by 500,000 barrels a day,

according to The Wall Street Journal. OPEC held a meeting last Thursday,

the 1st of July. The report of the meeting will be released on the 15th

of July, 2021.

Brent

crude oil prices were up from $74.50 to $76.71 on Thursday, making a

new high for the year and its highest price in two years. Brent crude

oil is now trading above 2019 high and approaching 2018 high.

Goldman

Sachs' prediction, at the beginning of June, was that the price of

Brent crude oil will hit $80 per barrel by the third quarter of this

year. Although, more upside is expected by 2022. This remark was made

when discussing the nuclear deal between the U.S. and Iran.

In

fact, if you told me Irans not coming back, our $80 forecast is way

too low relative to where the oil market is heading by 2022,

Technical Analysis

The

steady rise in the price of Brent Crude oil has been smooth. It made it

easy for buyers to go through supply areas without any difficulty. The

2019 high was removed easily and the next supply area is at $84, which

is a 2018 high.

The

price might react from the $80 psychological price area as all eyes lie

in this price area. Therefore, the price of Brent crude oil might keep

rising for the next few weeks. The gap between the 200-day and 50-day MA

continues to widen. Price is trading way above the 50-day MA at the

moment.

Price

is likely to look for support on both intraday and interday timeframes

before continuing its upward movement. Brent crude oil is still bullish,

and more upside is expected.

XRPUSD

Ripple and Litecoin pulled back the same way by forming a channel after the new-low was created.

Failure

to break above $0.7 will see price return to the recent low at $0.54.

And a break above $0.7 will see the price rally back to $0.8.