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Today, Brent crude is sliding towards the psychological $70 per barrel mark, with the XBR/USD chart showing a break below a key support level (marked in blue) that had been holding since autumn last year.
Why Is Brent Crude Falling?
The bearish sentiment in the market is driven by OPEC+’s decision to increase oil production, contrary to analysts’ expectations that existing output cuts—designed to support prices—would remain in place.
According to the Wall Street Journal, analysts now predict:
→ Oil production will rise by 137,000 barrels per day from April 2025 to September 2026.
→ Brent crude may drop below $70 per barrel.
Technical Analysis of XBR/USD
From a long-term perspective, Brent crude is forming a descending channel (marked in red), connecting the April and July 2024 peaks. The break below this support level could signal a renewed downtrend following a prolonged period of consolidation.
If XBR/USD sees a short-term recovery from its yearly lows, key resistance levels to watch include:
→ The midline of the descending channel.
→ The former support level (marked in blue).
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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.
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