As we write, Brent crude is trading above the $110 level, a level last seen in mid-May. Despite the surprising lack of fanfare around this latest move higher in oil, the potential for a breakout to the upside is intriguing. If Brent can continue to push higher from here, we could be in store for a proper vacuum move to the upside.

To understand why this is the case, let’s take a step back and examine the current state of the oil market. Global demand is strong, with the International Energy Agency (IEA) recently forecasting a 1.3% increase in oil consumption this year. This, combined with geopolitical tensions in key oil-producing regions and ongoing supply disruptions, has helped to drive up prices.

However, the real key to a potential breakout lies in the relationship between supply and demand. As we’ve seen in recent months, supply has struggled to keep up with demand, leading to a tighter market and higher prices. This dynamic has been particularly evident in the US, where production has plateaued despite continued growth in demand.

So, what does this mean for oil prices moving forward? While it’s impossible to predict with certainty, the current trends suggest that a breakout to the upside is possible. If Brent can continue to push higher from here, we could see a proper vacuum move to the upside, with prices potentially reaching levels not seen since mid-2014.

Of course, there are always risks and uncertainties in the oil market, and a breakout to the upside is by no means a guarantee. However, the current fundamentals suggest that a move higher is possible, and investors would be wise to keep a close eye on developments in the oil market in the coming weeks and months.