The price of Brent hit a multi-month high

On Monday, January 17, oil trades closed higher. Brent crude rose 0.11% to $86.54. On the first day of the week, trading was calm amid the closure of stock exchanges in the US due to the national holiday "Martin Luther King Day".

In the first half of the day, the price dropped to $85.51. In the American session, the price returned back to $86.60. On Tuesday, the rally intensified to $87.51 amid a report from Bloomberg that the rise in oil prices was caused by increased geopolitical tensions in the Middle East, in particular with the Houthi drone attack on Abu Dhabi.

The uptrend continues on the news and the easing of concerns about the impact of the covid omicron strain on demand. Against this background, the likelihood of a decision by OPEC + to continue the planned increase in production is growing. Buyers have set their sights on the level of $100 per barrel. It is easy for them to move up along the trend, breaking the protective stops of sellers. The target for buyers today is $87.80.

Here Indication of where price currently is on the Weekly Timeframe

on the 4h timeframe pull back is expected