Brent Crude Hits $75 Per Barrel

Brent crude’s green 5-day EMA is above its orange 13-day EMA, and its orange 13-day EMA is above its black 34-day EMA. This is a bullish EMA formation. We also note that there is angle and separation between the EMAs, which is indicative of a strongly trending market. Brent crude traded briefly over $75/barrel today which is the highest its traded since the latter half of 2014. Markets have been supported by the OPEC and Russian led supply cuts and potentially renewed US sanctions against Iran. Recently Saudi Arabia expressed that it wanted to see oil between $70-$80 per barrel. The supply cuts have also coincided with an increase in demand from Asian countries as new refineries come on line. The high price of oil has seen an increase in production from the US which may place a cap on just how high prices may rise. US supply is expected to hit 10.7 million barrels/day in 2018, which rivals that of Russia and Saudi Arabia.