Global Oil Abundance, But Will Prices Continue to Fall?
Global supply continues to surge as production from the OPEC+ bloc has resumed production cuts, while non-OPEC producers such as the US, Brazil, and Canada are actively adding capacity. For example, reports suggest that global supply growth could reach 2.7 million barrels per day in 2025, far exceeding demand, which is expected to grow by only around 0.7 million barrels per day. Under these conditions, the forward curve for Brent even indicated contango, indicating that the market is anticipating future oversupply.
On the demand side, growth is starting to slow, particularly in major consuming countries like China, and global macroeconomic pressures are weakening the consumption outlook. With this combination of rising supply and pent-up demand, bearish pressure on Brent remains real—the market is currently more cautious about upside and pricing in downside risks than a major price surge in the near term.
Brent oil prices were at $62.87 at the time of writing.
- Buy if the price moves within $62.92.
- Sell if the price moves within $62.82.
Resistance 2: $63.32.
Resistance 1: $63.13.
Support 1: $62.60.
Support 2: $62.38.
Disclaimer: This article is analytical in nature and is not a definitive reference. Consider fundamental and technical developments in trading before making investment decisions.
Source : Newsmaker.id
