Saudi Arabia, the world's top oil exporter, reduced crude prices for Asian customers to a four-month low yesterday. State-owned Saudi Aramco slashed the official selling price (OSP) for its flagship Arab Light crude by $2.30 to $1.20 per barrel.
The Saudi price cut marks the steepest decline in two years, and Aramco lowers prices for the second month in a row.
This decision follows OPEC+'s unexpected announcement to accelerate oil production increases. On Thursday, eight OPEC+ members agreed to a phased rollback of output cuts, raising production by 411,000 barrels per day in May, triple the expected growth and equivalent to 0.4% of global supply. This news, coupled with escalating global trade tensions, is pushing Brent crude into a new trading range, likely between $57−$68 per barrel.
Despite all the negative pressures on the market, technical analysis suggests Brent crude needs to retest its broken support level at $68 per barrel. Prices are likely to repeatedly return to this upper boundary of the new trading range, given its significance as a multi-year strong support level.
The overall recommendation is to buy Brent oil.
Profits should be taken at the level of $68 per barrel. A Stop Loss could be set at the level of $57.
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.
This content is for informational purposes only and is not intended to be investing advice.
