Brent Crude Falls Below $92 as Easing Tensions Weigh on Market Sentiment

Brent crude oil dropped below $92 per barrel on Friday, extending their downward trend and putting the market on course for a significant monthly decline. 

The weakness in prices followed reports that the United States and Iran had reached a tentative agreement to extend their ceasefire for an additional 60 days. 

The proposed arrangement could also allow unrestricted shipping through the Strait of Hormuz, a critical global oil transit route, easing concerns over potential supply disruptions and reducing risk premiums in the oil market.

Source:Tradingeconomics

Crude Oil Rebounds from Key Support but Bearish Trend Remains Intact

Crude oil remains under bearish pressure,with price continuing to trade below the descending trendline and major moving averages.Price is currently trading near $92,with immediate resistance at $93.72.A break above this level could open the door for further gains toward $95.47 and $97.23.

Momentum indicators are showing gradual improvement.The Stochastic oscillator has turned higher from oversold levels,while the RSI is recovering,suggesting that buying momentum is beginning to strengthen.

As long as price holds above $88.03, a short-term recovery remains possible.If price breaks decisively beneath support, bearish momentum may accelerate and push prices lower. 

Source:X

Brent Crude Faces Monthly Loss Amid Easing Geopolitical Tensions 

The international oil benchmark has lost nearly 15% this month as hopes for a potential US-Iran agreement improved market sentiment.

Investors have become more optimistic that diplomatic progress could help reduce tensions and ease concerns over global oil supplies.

Despite the positive outlook,key issues remain unresolved,including Iran’s nuclear program, sanctions relief, and the future of shipping through the Strait of Hormuz.