Brent crude oil turns down from resistance at 75.00 USD

The Brent crude oil price failed to overcome the 75.00 USD mark and fell to the area around 70.00 USD. According to our Brent forecast, the daily trend remains downward, signalling that the decline may continue. Read our Brent analysis for today, 26 September 2024, for further insights.

Brent forecast: key trading points

• US data: EIA statistics published yesterday showed a decline of 4.47 million barrels in crude oil inventories
• Current trend: the upward correction of oil prices within the downtrend has ended
• Brent forecast for 26 September 2024: 72.00 and 70.00

Fundamental analysis

Brent prices paused their upward correction and turned downwards after reaching the resistance level of 75.00 USD. This week's US oil inventory data from the American Petroleum Institute (API) and Energy Information Administration (EIA) showed a decline of 4.34 and 4.47 million barrels, respectively.

Despite the reduction in US oil inventories, Brent quotes fell due to concerns over the slower growth of the Chinese economy, which is expected to lead to reduced demand from China, one of the largest consumers of hydrocarbons. This serves as a signal that downward pressure may continue.

Brent technical analysis

In our Brent prediction, the price appears to have completed its upward correction, turning downwards from the resistance level of 75.00 USD. Prices fell today to the area near 70.00 USD, where they found temporary support from buyers. The daily trend remains downward, and the decline may continue according to our Brent outlook.

The short-term Brent forecast suggests that if the bulls push the price above 72.00 USD, there could be a retest of the 75.00 USD resistance level. Conversely, if the bears break below 70.00 USD, the price may drop further to the support zone between 68.00 and 68.50 USD.

Summary

Brent quotes formed a downward reversal from the resistance level at 75.00 USD. The daily trend is downward, signalling that further declines may be ahead, with key levels to watch at 72.00 and 68.00 USD. Keep an eye on the latest Brent news for more updates.