Brent Oil Price Drops Over 3.5% in Two Days

As indicated by the XBR/USD chart, the price per barrel opened at $80.28 on Friday and closed at $77.27 on Monday. Moreover, early Tuesday trading also shows a downward trend.

Bearish sentiment in the market is being influenced by geopolitical factors, particularly the easing of tensions in the Middle East. According to media reports, Israeli Prime Minister Benjamin Netanyahu has accepted a proposal aimed at resolving disagreements between Israel and Hamas.

Additionally, ANZ Bank analysts point to a reduction in petrol consumption in China due to the increasing use of electric vehicles.

Could Brent crude oil prices continue to fall further?

Technical analysis of the XBR/USD chart indicates that the price is approaching a key support level (shown in yellow) that dates back to 2023. This raises concerns, especially given the bearish indicators:

→ The recovery from B to C has retraced approximately 50% of the A to B downward impulse;
→ The formation of peak C has seen false bullish breakouts of previous local highs;
→ The bearish candles on Friday and Monday have broad bodies and closed near their lows, indicating a lack of demand (or effective selling pressure).

Thus, it is reasonable to assume that the bears might attempt to breach the critical support level, potentially leading to a new low for August.