Brent Drops, Geopolitical Risk Premium Thins
Brent oil weakened on Monday (February 23rd), dropping around 1% to hover around $71/barrel as the market assessed the likelihood of a de-escalation in the US-Iran tensions ahead of the next round of nuclear talks in Geneva. The prospect of reopened diplomacy lowered the geopolitical risk premium that had boosted prices last week, prompting profit-taking in the energy sector.
Additional pressure comes from concerns about a global economic slowdown due to uncertainty surrounding US tariffs. After the US Supreme Court ruling invalidated the reciprocal tariff scheme, President Donald Trump responded with plans to increase global import tariffs to 15%, rekindling risk-off sentiment that has pressured risk assets, including oil. Market participants' focus is now on developments in the US-Iran negotiations and the direction of US trade policy, which will determine whether Brent's weakness continues or stabilizes.
The oil price at the time of this analysis is $70.56
- Buy if the price moves below $70.60
- Sell if the price moves below $70.51
Resistance 2: $70.74
Resistance 1: $70.65
Support 1: $70.47
Support 2: $70.38
Disclaimer:
This article is analytical in nature and is not a definitive reference. Please consider the influence of fundamental and technical developments on trading before making any investment decisions.
Source: Newsmaker.id
