Brent crude edged down $0.29 (0.4%) to $68.92/barrel whereas WTI retreated by $0.35 (0.5%) to $66.63/barrel.
The dip follows reports that U.S. President Donald Trump set a 50‑day deadline for Russia to exit the Ukraine conflict reducing fears of imminent supply disruptions.
What’s Driving the Slide
- Easing sanction fears: The delayed approach to Russia decreased the urgency that had earlier driven prices upward.
- Global tariff worries: New U.S. tariffs on EU, Mexico, and others raise the spectre of slower global growth and thus weaker oil demand.
- Technical pressure: Brent’s movement below its 50‑day EMA signals cautious sentiment, despite being near key support levels around $68.25–68.40.
Market Outlook
Bullish factors: OPEC maintains a balanced outlook into Q3 Goldman Sachs recently cut its Brent forecast to $66 but still eyes tighter inventories into late 2025.
- Upside risks: If Iran blocks the Strait of Hormuz or sanctions hit Russia, prices could jump though markets currently lean toward cautious optimism.
- Technical bounce potential: Advanced chart models suggest Brent might rebound toward $71.15 if support holds near current levels
- Today’s prices: Brent ~$68.90, WTI ~$66.60.
Key triggers: reduced sanction risk, U.S. tariff fears, and technical charting patterns.
Written By Ian Maleve
