Selling Brent crude with target of $60 per barrel

Bearish sentiment continues to plague the global oil market. Stagflationary pressures and high import tariffs worsen the world’s economic outlook and weigh on commodity demand. The US labor market weakness is slowing down manufacturing activity in all countries doing business with America. At the same time, stubborn inflation prevents central banks from easing monetary conditions, thus causing production costs to increase.

Meanwhile, according to data from the International Energy Agency (IEA), non-OPEC+ oil supply growth continues apace, with output in the US, Brazil, Canada, Guyana, and Argentina hovering close to their all-time highs. These countries plan to boost production by 1.4 million barrels per day (bpd) in 2025 and by just over 1 million bpd in 2026. At the same time, the alliance intends to raise supply by 1.3 million bpd this year and by 1 million bpd next year. These figures are comparable to those of non-OPEC+ nations.

From a technical perspective, Brent crude prices keep trading downward within a falling wedge. A potential break below $65 per barrel may trigger a further decline toward $60.

The overall recommendation is to sell Brent. Profits should be taken at the level of $60. Stop Loss could be set at $72.

The volume of the 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.