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Brent falls to a one-week low as Iran sanctions worries fade
Brent dropped more than 3% after slipping through the $90 level and testing key support near the 38.2% retracement at $88.43.
Brent oil prices fell to a one-week low after a pullback accelerated from a new peak around $94.81, with the move extending for a second straight day, according to Action Forex.
The decline gained momentum as price broke below the psychological $90 support and pressured key technical levels, including pivotal Fibo support near $88.43, the 38.2% retracement of the $78.10 to $94.81 range.
Action Forex said the daily chart technical picture has weakened, citing fading bullish momentum and a drop below the 100 and 10 day moving averages, while noting that a sustained break below $90 would be needed to confirm the bearish signal.
On the geopolitical side, the outlet pointed to expectations that the latest US sanctions plan targeting Iran may carry less risk to oil supply than a broader military escalation, even as it noted the Hormuz strait remains closed for much of the traffic. Action Forex added that with Western economies having already reduced stockpiles, oil prices could still trend higher unless there are significant changes.
Latest closeBrent $88.59 ▲1.8%