IEA Head Birol: Oil Prices Double Pre-War Levels, Inflation Pressure to Persist

Statements by IEA Chief Birol that oil prices have doubled compared to pre-war levels and that inflationary pressure will persist could support Brent crude by keeping supply concerns alive. Technically, the RSI is in neutral territory at 57.7, while the MACD has just started to rise above the signal line. Although the price closed above the 20-day SMA (105.73), it is trading near the 50-day SMA (106.38). While there is potential for an upward move in the short term, the rally is expected to remain limited as inflationary pressure could negatively impact demand.

The news emphasizes that inflationary pressures will persist, pointing to high oil prices. This could create a favorable profit environment for energy companies. However, technical indicators show the RSI approaching overbought territory at 64.9, with prices above short-term averages. The MACD is positive but hovering near the signal line, suggesting momentum may weaken. Short-term upside potential may be limited, making a neutral outlook more appropriate.

The news highlights that elevated energy prices will continue to exert inflationary pressure. This makes it difficult to determine a clear short-term direction for oil companies such as Chevron. On the technical indicators, the RSI is at 59, in neutral territory, while the MACD is above the signal line but with weak momentum. Although the price is above the 20- and 50-day moving averages, upward movement may remain limited due to the uncertainty created by the news. Therefore, a sideways trend is expected in the short term.

Statements by the IEA Chief that oil prices will remain high and inflation pressure will persist send mixed signals for energy sector stocks in the short term. BP shares technically exhibit weak momentum, with the RSI at 45 and the MACD remaining below its signal line. The 20-day and 50-day moving averages are trading close to each other, indicating that the price is moving within a horizontal band. While the news confirms that oil prices will remain elevated, current technical indicators are insufficient to determine a clear direction. Therefore, a sideways trend can be expected in the short term.