Brent backs down from fresh rebound highs above $84

Oil prices enjoyed a strong end to the week on Friday. Brent crude for March delivery rose to new 2024 high at $83.81 after settling $1.12 higher on the NYMEX exchange, at $83.55. The driver for the gains ahead of the weekend came as Mid East tensions continued to escalate and the prospect of further supply disruption, resultant from yet more Houthi attacks in the Red sea. The March contract therefore further extended its break above $80 and more importantly above its 200 day moving average (in place at $79.78 as of the close on Friday). The break above the 200 day moving average had started to unfold in more convincing fashion the day before. Prior to that the outlook here had been repeatedly warning of false breaks to the downside. As you can now see, those warnings were for good reason. So, earlier today the price of Brent crude for March delivery reclaimed the $84 per barrel handle, reaching $84.80. It has backed off from there since and dropped back below $84, currently trading right now at $83.79