Selling Brent oil with target of $57 per barrel

Global oil prices, including Brent, are poised to face headwinds in the medium term as recession risks cloud the outlook for the world's largest hydrocarbon consumers, the United States and China. A potential economic slowdown is expected to materially dampen fuel demand growth, exerting significant pressure on oil prices.

According to automotive industry analysts, vehicle production in North America is projected to decline by 10-20% due to newly imposed tariffs on cars, that went into effect on April 3. Should these tariffs be extended to include auto parts, the decline in production could reach as much as 30%. This impact is limited to the automotive sector in North America, and the broader implications for other industries remain difficult to assess at this stage.

Adding further pressure to the market is the recent move by the Organization of the Petroleum Exporting Countries and its allies (OPEC+) to proceed with their planned production increases. The eight member states that had previously implemented additional voluntary cuts—Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman—convened virtually on April 3, 2025, to reassess production targets.

The alliance has now agreed to return 411,000 barrels per day to the market in May, a notable revision from the initially planned increase of 135,000 barrels per day.

From a technical perspective, Brent crude has approached the weakening support level of $70 per barrel, marked by steep bearish candles, and is likely to breach this level in the near future.

The overall recommendation is to sell Brent oil. 

Profits should be taken at the level of 57. A Stop loss could be set at the level of 80.

The volume of the opened position should be set in such a way that the value of a possible loss, fixed with the help of a protective Stop loss order, is no more than 1% of your deposit funds.