Selling Brent crude with $60 per barrel in sight

In general, the oil market continues to face pressure from rising supply. Iraq's state-owned company, SOMO, reported that crude exports averaged 3.38 million barrels per day (bpd) in August, and forecasts predict they will reach 3.45 million bpd in September. This growth mirrors OPEC+'s decision to reverse voluntary production cuts. Meanwhile, oil inventories are still pretty high. This excess supply is suppressing short-term price potential, even though reserves in the US and China have absorbed some of the surplus.

Another contributing factor is geopolitical friction, which intensified when four Western nations recognized Palestine as a state. This diplomatic move prompted severe criticism from Israel and escalated anxieties regarding ongoing regional instability. Oil traders are keeping a close eye on the situation, fearing potential supply disruptions from major producers.

From a technical standpoint, Brent crude maintains a weak posture as long as its price stays beneath both the 100- and 200-day moving averages. Rising Iraqi supply and high inventories are curbing any rally, and so far, geopolitical risks haven't been enough to generate sustained buying. A confirmed break below $64.50 would solidify a short-term bearish outlook for this oil grade.

The ultimate recommendation is to sell Brent crude. Profits are taken at $60.00. Stop loss is placed at $69.30.

The volume of your open position should be calculated so that the potential loss (protected by a Stop Loss order) does not exceed 1% of your deposit. If your account balance does not allow opening a position of this size, it is better to avoid entering the market on this signal and wait for other trade options that meet low-risk criteria.