Beware of Pressure Correction Ahead of Alaska Meeting
Brent oil prices rose slightly in early trading on Tuesday morning, trading around US$66.71 per barrel, boosted by news of an extension of the trade tariff pause between the United States and China. This move raised hopes for stability in global trade and eased concerns about slowing energy demand.
Positive sentiment also stemmed from concerns over tight global diesel supplies. Strong demand, combined with supply constraints despite OPEC+ production increases, has supported oil prices.
The market now awaits the meeting between US President Donald Trump and Russian President Vladimir Putin in Alaska on August 15. If the meeting yields diplomatic progress regarding the Ukraine conflict, pressure on oil prices from potential sanctions against Russia could ease.
In terms of projections, Goldman Sachs maintained its Brent price forecast at around US$64 per barrel for the fourth quarter of 2025, while Citibank predicted prices could fall to the low $60s by year-end if global demand weakens.
Technically, Brent prices remain below the 50-day moving average (EMA50), indicating a short-term weakening trend. Immediate resistance is around US$69.65, while strong support is at US$66.00. Analysts project a possible upward correction before a potential further decline if bearish momentum strengthens again.
Given this combination of fundamental and technical factors, oil market participants are advised to closely monitor key technical levels and geopolitical developments ahead of the weekend, which could potentially determine the future price direction.
Source: Newsmaker.id
