Brent set for first weekly gain since mid-April

The global oil benchmark is on course to post a weekly advance of over 3%, ending a run of four straight weekly declines.

Oil prices have enjoyed a risk-on lift this week from optimism that the US will indeed avoid a default.

However, oil bulls still have much to do to restore Brent back to the $80-$90/bbl range.

Prices must first overcome last week’s high at $77.49 before the 50-day simple moving average (SMA) lies in wait to potentially offer stronger resistance.

Oil’s upside is likely to be capped until markets can put to bed the angst surrounding the looming recession, especially if the Chinese economy can offer evidence of a broader and more resilient recovery.

A re-emergence of demand-side fears could invite bears to target the following lower levels:

• $73.33
• $71.36
• $70.07