Brent Crude Dips to Monthly Low as Bearish Pressure Mounts
The XBR/USD chart shows that Brent crude has fallen below $62 today (Friday), later than climbing above $64.50 earlier in the week. This marks a drop of more than 4% from the week’s peak.
The rapid decline is being driven by easing geopolitical tensions and growing optimism over a potential reanswer to the conflict in Ukraine.
Reports circulating in the media suggest secret discussions between the Trump administration and Moscow regarding a possible ceasefire. The retreat in oil prices indicates that the previous risk premium—reflecting fears of escalation and supply disruptions—is now being replaced by expectations of a reanswer, which may include a loosening of sanctions on Russia.
Additional bearish factors include:
→ signs of fragileness in China’s economy, the world’s largest oil consumer;
→ rising crude inventories in the United States.
Technical Outlook for XBR/USD
Since late October, Brent has been trading within a descending channel. Key signals of strong tradeing pressure include:
1→ a steep drop without retracements during yesterday’s session;
2→ the break of $62.60 support accompanied by a bearish gap.
Given this context, it is plausible that:
→ Brent may continue towards the lower half of the channel;
→ the channel’s median line could serve as resistance.
Moreover, if fundamental developments confirm progress towards ending the Ukraine conflict, the downward trend could extend further. A scenario in which Brent tests the channel’s lower boundary, near the psychological $60 per barrel level, remains entirely possible.
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