Brent is trading just below 77.00 USD, consolidating in a sideways range

Brent’s price is moving within a broad sideways range while a triangle pattern is forming on the chart. Find out more in our Brent analysis for today, 3 September 2024.

Brent forecast: key trading points

• US data: the market awaits US oil stock statistics from the API and EIA and US employment market data this week
• Current trend: the price is consolidating within a broad sideways range
• Brent forecast for 3 September 2024: 80.50 and 75.00

Fundamental analysis

Brent quotes have halted their decline as part of a downward correction and are now trading within a broad sideways range. Market participants await this week’s release of US oil inventory data from the American Petroleum Institute (API) and the Energy Information Administration (EIA).

The market will also focus on US employment market statistics, with the ADP employment data due on Thursday, nonfarm payrolls, and the unemployment rate scheduled for release on Friday. Employment figures may affect Brent prices: robust statistics will contribute to strengthening, while a decline will exert pressure on the price.

Brent technical analysis

Brent quotes are currently hovering just below 77.00 USD. On the H4 chart, the price is moving within a broad sideways range between 75.00 and 80.50, gradually forming a triangle pattern. Once the pattern is complete, the direction of the price movement out of the pattern will indicate prospects for further oil price movements

The short-term Brent price forecast suggests that if bulls push the price above the upper boundary of the triangle and the 80.50 level, this will open the way towards 85.00. If bears push the price below the triangle’s lower line and the 75.00 USD support level, it could fall further to 70.00

Summary

Oil prices are currently trading within a broad sideways range between 75.00 and 80.50 USD. The API and EIA oil stock data and US employment statistics may give additional momentum to Brent’s movements this week.