Brent crude sell-off targets $88.50

The short-term outlook for Brent crude points to persistent pressure, with prices likely to test support near $88.50 per barrel. The current environment is defined by strong risk-off sentiment, and commodities are feeling the heat.

The US debt market, by contrast, is on the rise. Investors are now eagerly buying 30-, 10-, and 5-year bonds—well-known safe havens—lifting Treasury prices and weighing on yields. This is a classic flight to protection amid mounting concerns over a global economic slowdown.

The dollar index (DXY) is confidently climbing, having recently settled at 98.78. Since oil is priced in USD, a stronger greenback makes fuel more expensive for holders of other currencies, such as the euro, the pound, and the Aussie. This clearly dampens physical demand. The world’s major indices (S&P 500, Nasdaq 100, Euro Stoxx 50, and DAX) have also taken a hit. Their collapse reflects expectations of a drop in corporate profits and a broader slowdown in economic activity, which directly affects future energy consumption.

What are we seeing in the refined products market? RBOB gasoline (-1.71%) and heating oil (-1.65%) are falling at an even faster pace, confirming a lack of end-use demand and leaving crude without fundamental backup.

The downtrend is likely to persist in the coming trading sessions. A stronger dollar and weaker global indices could weigh on Brent oil, driving it toward the psychologically important support level at $88.50. If fuel breaks below this threshold amid deteriorating market sentiment, the next target might be $85.00, where the decline may ease on short covering.

The overall recommendation is to sell Brent crude. Profits should be taken at $88.50. Stop Loss could be set at $93.35.

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.