The oil market is all the same, with a key long-term hurdle still being the demand-supply imbalance, leading to mounting crude inventories. Under these circumstances, the Brent outlook for 2026 appears as gloomy as ever. Prices are set to dive deeper next year.
The market surplus is actively fed by increased output volumes from major producers, led by the United States. Investors keep playing it safe amid uncertain economic prospects and the risk of slowing oil consumption.
Furthermore, winter is typically a season of weak energy demand for heating, as necessary reserves are usually built up during spring and fall. This factor adds more pressure to crude prices.
From a technical perspective, Brent oil is now nearing the support area between $57.0 and $58.0. That's exactly where the price lows were set in April and May. This range is highly likely to act as the base of an unfolding bearish pattern, which quotes aim to break. As previously mentioned, the level of $46 per barrel is a potential long-term target, but that will not happen anytime soon. At first, Brent crude will probably move toward $58.7. Hitting this threshold could be a sign that the price is still testing support before breaking down.
The overall recommendation is to sell Brent oil. Profits should be taken at the level of $58.7. Stop Loss could be set at $63.2.
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.
This content is for informational purposes only and is not intended to be investing advice.
