Abundant Supply, Could Brent Still Fall?
Brent prices remain under pressure and are heading for a second weekly decline, as the market focuses more on the risk of oversupply than potential supply disruptions. Brent is hovering below $60/barrel (down by more than 2% in a week), while WTI is hovering around $56/barrel—reflecting the sentiment of "supply is plentiful, demand is not yet strong enough."
The main concern stems from the view of large traders that the market could potentially be in surplus by early 2026. Trafigura even estimates that Brent could remain in the $50s until mid-2026 if there are no major disruptions or significant production cuts. Geopolitical risks (Russia-Ukraine, Venezuela) could indeed hold back the decline, but so far they haven't been enough to overcome the "glutton narrative." Furthermore, with the year-end holidays approaching, trading volumes are thin, making price movements more volatile. (az)
The oil price at the time of this analysis was $59.39
- Buy if the price moves within the $59.49 range
- Sell if the price moves within the $59.29 range
Resistance 2: $59.69
Resistance 1: $59.59
Support 1: $59.19
Support 2: $59.09
Disclaimer
This article is analytical in nature and is not a definitive reference. Please consider fundamental and technical developments in trading before making any investment decisions.
Source: Newsmaker.id
