Brent Crude Price Breaks Key Support Level
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 cutsdesigned to support priceswould 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).
Read more: https://fxopen.com/blog/en/oa-brent-crude-price-breaks-key-support-level/
Text source: Forex Trading Blog
