Brent Crude Oil Price Could Rally 32%, And the Reason Is Not Iran This Time

Brent crude oil is showing signs of a potential 32% rally, driven by a bullish inverse head and shoulders pattern forming since late March. This setup projects a significant price increase upon a confirmed break above the neckline. Crucially, this bullish outlook is no longer solely dependent on the Iran conflict, which had previously boosted prices. Three independent signals now support this rally: the futures curve exhibits persistent calendar backwardation, indicating physical scarcity even as peace talks progress; oil options positioning, particularly for the BNO ETF, is deeply call-heavy with a low put-call ratio; and China, the world's largest oil importer, is increasing its imports and building reserves at a record pace, a demand driver independent of geopolitical events. The price is currently holding above key moving averages, with support levels identified at $102.72 and $95.78, while a break above $113.95 could confirm the bullish reversal targeting $154.26.

(Source：BeInCrypto)