Brent crude oil has broken below the $90 per barrel mark as optimism builds around a potential US-Iran nuclear deal and following President Trump’s decision to call off planned military strikes, according to Societe Generale analysts Kenneth Broux and team. The decline represents a continuation of weakening momentum that has pushed prices through key technical support levels.
Technical analysis from the French bank shows Brent has now lost its 50-day moving average and breached an ascending trend line that previously supported prices, signaling further downside potential ahead. The combination of geopolitical de-escalation and weakening technical structure suggests the bearish trajectory could extend in coming sessions.
Energy traders and commodity-exposed portfolios should brace for additional pressure on oil prices as both fundamental catalysts and chart patterns align bearishly. The breakdown below $90 removes a psychological support level that could accelerate selling momentum.
FXnCO Insight
Traders should monitor lower Brent targets as technical deterioration compounds diplomatic developments that reduce Middle East risk premium in oil pricing.
Source: FXStreet