Brent crude prices are under significant pressure as worries over a growing global supply glut mount. Compounding this, ongoing US-China trade tensions are stoking fears of an economic slowdown and lower demand for oil. These concerns are underscored by a recent International Energy Agency (IEA) report forecasting excess fuel in 2026.
The economic outlook has been further clouded by data from China, where GDP growth decelerated to a one-year low in the third quarter. This speed-down, driven by weak domestic use, challenges Beijing's export-focused strategy amid persistent commercial disputes with the US.
Last week, the head of the World Trade Organization (WTO) amplified these concerns, urging the two economic giants to de-escalate tensions. She warned that a full decoupling could slash global output by 7% in the long run. This wake-up call came after the two nations resumed their trade standoff by imposing new port charges on ships traveling between them, a move that threatens to disrupt global cargo flows.
Adding to the bearish sentiment, US energy firms increased their count of oil and gas drilling rigs last week for the first time in nearly a month. This is a sign of growing domestic supply, which puts downward pressure on fuel prices.
The ultimate recommendation is to sell Brent crude. Profits are taken at $59.10. Stop loss is set at $62.8.
Calculate your open position so that a potential loss (protected by a Stop Loss order) is limited to 1% of your deposit. If your account balance does not allow entering a position of this size, it is better to skip the trade and wait for other market signals that meet low-risk criteria.
This content is for informational purposes only and is not intended to be investing advice.
