As shown on the XBR/USD chart, the price of Brent crude oil dropped to $73.92 yesterday:
→ this marks a new low for 2025;
→ the decline since 15 January exceeds 9%.

Bearish sentiment is being driven by Trump's policies. According to Reuters, the Brent crude price is falling due to:
→ US President Donald Trump’s renewed trade war with China;
→ threats of tariff hikes for other countries;
→ high oil inventory levels in the US;
→ Trump’s promise yesterday to increase US oil production.

Additionally, the US Treasury Department announced yesterday that it was imposing new sanctions on several individuals and tankers involved in delivering millions of barrels of Iranian crude oil to China each year, adding to the volatility of Brent crude prices.

Could the Brent crude price continue to fall?

From a technical analysis perspective of the XBR/USD chart, we can see that the price has dropped to a key support level around $75 per barrel. At this level, bulls had the upper hand, managing to break a major resistance line at the end of 2024. It is possible that bulls remain strong in this price range, and the long lower wick on the candlestick—marked with a blue arrow—supports this idea.

On the other hand, bears appear to be gradually gaining control at increasingly lower levels (as indicated by the red arrows):
→ the $77 level acted as resistance when Brent crude prices moved in February;
→ the $75 level has now shifted from support to resistance.

Given these factors, it is reasonable to assume that supply and demand forces may balance each other out at current levels, leading to signs of consolidation in the Brent crude price chart.

Start trading commodity CFDs with tight spreads. 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.