Brent crude oil is holding steady around the $60 level, even after OPEC announced another 411,000 barrels per day increase in output, following similar hikes in May, June and smaller one in April. This latest adjustment comes at a time when global economic slowdown concerns are rising, making the decision a risky one. Although the main reason points to non-compliance from Kazakhstan and Iraq, some believe the United States may have played a role, possibly through pressure from Trump aimed at controlling inflation during the ongoing tariff hikes.
With several consecutive production increases now in place, a growing surplus is likely to develop over the second half of 2025. This would maintain downward pressure on oil prices if demand fails to keep pace. At the same time, the broader economic outlook is weakening. Recent manufacturing activity data from China, the United States, the European Union, and the United Kingdom all came in below 50, suggesting a faster rate of contraction. The presence of widespread tariffs is expected to continue weighing on business sentiment and consumer demand, potentially leading to rising unemployment and slowing growth.
In this environment, any short-term spikes in Brent and WTI prices are likely to remain opportunities to sell, unless there is a meaningful shift in underlying fundamentals. For a more detailed view of economic trends, please refer to the latest monthly report.
Brent crude has been in a steady downtrend since March of last year. While the price movement doesn't follow a perfect trend channel, the structure has generally held well. At the moment, Brent is hovering near the middle of this declining channel.
The former long-term support zone around $70 to $72. If prices move up toward this zone, it could present a fresh selling opportunity as long as the resistance holds. On the downside, the $60 level and the area just below it have formed a solid medium-term support, which has held up so far.
Still, oil bulls should be cautious around the $60 mark. Even though support looks strong for now, the overall direction of the trend and the broader fundamental backdrop suggest that this level could eventually break. Any long positions taken near current levels should factor in the potential for renewed downside pressure.
With several consecutive production increases now in place, a growing surplus is likely to develop over the second half of 2025. This would maintain downward pressure on oil prices if demand fails to keep pace. At the same time, the broader economic outlook is weakening. Recent manufacturing activity data from China, the United States, the European Union, and the United Kingdom all came in below 50, suggesting a faster rate of contraction. The presence of widespread tariffs is expected to continue weighing on business sentiment and consumer demand, potentially leading to rising unemployment and slowing growth.
In this environment, any short-term spikes in Brent and WTI prices are likely to remain opportunities to sell, unless there is a meaningful shift in underlying fundamentals. For a more detailed view of economic trends, please refer to the latest monthly report.
Brent crude has been in a steady downtrend since March of last year. While the price movement doesn't follow a perfect trend channel, the structure has generally held well. At the moment, Brent is hovering near the middle of this declining channel.
The former long-term support zone around $70 to $72. If prices move up toward this zone, it could present a fresh selling opportunity as long as the resistance holds. On the downside, the $60 level and the area just below it have formed a solid medium-term support, which has held up so far.
Still, oil bulls should be cautious around the $60 mark. Even though support looks strong for now, the overall direction of the trend and the broader fundamental backdrop suggest that this level could eventually break. Any long positions taken near current levels should factor in the potential for renewed downside pressure.
Trade active
70-72 zone is a major resistance for Brent and currently being tested.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.