Deutsche Bank: Brent Crude Expected to Reach $90 at the End of This Quarter

Deutsche Bank predicts that Brent crude oil prices will reach $90 by the end of this quarter. WTI Price Analysis: Oil prices slightly declined above $82.00.

Since the end of June, oil prices have been steadily rising. We expect Brent crude oil prices to be around $85 by the end of the year, as we anticipate Saudi Arabia gradually ceasing voluntary production cuts in the fourth quarter, thereby increasing market supply. Additionally, we forecast a mild economic downturn in the United States in the first half of 2024, which will dampen oil demand. China's demand growth is also expected to significantly slow down after strong growth in the first half of 2023.

WTI Price Analysis: Oil prices slightly declined above $82.00

WTI crude oil bears struggle to sustain the previous day's pullback from yearly highs. The MACD is about to present a bullish crossover, with last week's horizontal support and the 200-hour moving average providing support for oil sellers. Unless it falls below $80.70, WTI buyers remain hopeful.

There is still some selling pressure around $82.30 for WTI, hovering near the day's low in early European trading on Friday as traders look for further clues to extend the reversal seen from the highest levels in nine months the previous day. It is worth noting that the lack of significant data/events, uncertainty around major central banks and China, and caution ahead of the release of mid-term US data have all kept oil traders subdued in recent times.

However, the seven-day horizontal support limits the immediate downside space for WTI crude oil around $82.20. Subsequently, the psychological level of $82.00 and the 200-hour moving average (HMA) near $81.75 could test the energy market.

Most importantly, the bearish sentiment will not garner much attention unless oil prices can sustain within the upward trending channel from two weeks ago, currently between $80.70 and $84.75. Conversely, a recovery in oil prices needs validation around the intraday high of $82.70 to regain control.

Furthermore, the yearly high set the previous day at $84.35 will test the upper limit of buying interest in the energy market, which is near the channel's level of $84.75. If WTI bulls continue to hold above $84.75, the focus will shift to the target levels near the November 11 high of $89.35 and the psychological level of $90.00.

Hourly Chart of WTI Crude Oil