Brent Crude Oil Hits 2.5-Month High in Early 2025
FXOpen
The XBR/USD chart shows a strong rally in Brent crude oil prices on January 2–3, breaking above $76.20 for the first time since mid-October.
According to Reuters, this surge was driven by:
- Economic stimulus measures in China, including wage increases for public servants and a significant boost in funding through treasury bonds.
- Forecasts of a colder winter in the US and Europe, potentially increasing demand for oil products.
According to technical analysis of the XBR/USD chart, the price broke out of a consolidation pattern (highlighted in blue) that had confined it in late 2024.
However, signs of waning bullish momentum are emerging:
- At point B, the price only slightly surpassed the previous high at point A before reversing downward, indicating buyer weakness.
- A bearish divergence is forming between the RSI indicator and points A and B.
These signals suggest that Brent crude oil prices could be vulnerable to a correction, potentially targeting the lower blue trendline as a support level.
Start trading commodity CFDs with tight spreads (additional fees may apply). Open your trading account now or learn more about trading commodity CFDs with FXOpen.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Stay ahead of the market!
Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.
Latest articles
Oil Markets: Why Could the Risk Premium Fade
Oil markets have recently reacted to geopolitical developments — but the more important signal may lie in how price action is evolving afterwards.
In this video, we look at why the risk premium in oil could begin to fade, despite ongoing
USD/JPY Builds Positioning Ahead of Signals from the Bank of Japan
USD/JPY dynamics continue to be driven by the persistent yield gap between US and Japanese government bonds. With the Federal Reserve maintaining a relatively hawkish stance and keeping rates elevated as of April 2026, the Bank of Japan remains
Australian Dollar Pulls Back from Highs on Weaker Data
The Australian dollar is undergoing a corrective decline after reaching recent highs, with the current move driven by market reaction to newly released macroeconomic data. Earlier gains in AUD were supported by improving global risk sentiment and steady demand for