Selling Brent with target of 57.60 amid concerns over global economic growth

Brent oil prices dropped at the start of trading on Friday, after falling by more than $2 per barrel the day before. The benchmark opened at $63.49 on Friday, April 11, extending a two-week losing streak as worries mount over slowing global growth and weaker energy demand.

The escalating trade tensions between the US and China are adding pressure to the market. President Donald Trump has hiked tariffs on Chinese imports to 145%, prompting Beijing to retaliate with 84% duties on American goods. These strains are fueling fears of slowing global trade and significantly weaker economic growth in the world's two largest oil consumers, the US and China. This, in turn, could lead to a decline in global oil demand.

Yesterday, the US Energy Information Administration (EIA) downgraded its global economic growth and oil demand forecasts for both this year and next, citing tariff-related headwinds. The gloomy outlook is reinforced by the fact that trade tensions are already disrupting supply chains and weighing on international commerce.

Market tensions are intensifying as investors flock to safer assets, putting additional downward pressure on oil prices. Unless US-China trade negotiations show progress soon, Brent crude could fall below $60 per barrel.

Moreover, OPEC+'s plans to boost output are adding further pressure to the market. Given the already weak global energy demand, this move is only making things worse—paving the way for further declines in oil prices.

The technical analysis confirms a continuation of the downtrend. Prices are hitting new lows, while the MACD indicates a decline—the main line remains below the signal one, and the widening gap between them reinforces the bearish pressure. Meanwhile, the RSI is hovering near oversold territory, reflecting persistent selling pressure and leaving room for additional drops.

Current recommendation: 

Sell at the current price. Take profit – 57.60. Stop loss – 67.30.