XBR/USD Chart Analysis: Oil Price Declines Towards Key Support
As the XBR/USD chart shows, Brent crude oil has made two significant moves recently:
- Last week’s price increase (A) followed President Donald Trump’s intentions to impose tariffs on India due to its purchases of Russian oil. This could have disrupted established oil supply chains.
- The price decline (B) may have been driven by both the decision of OPEC+ countries to increase production and reports of a weakening US labour market.
Thus, there is reason to believe that the more than 4.5% decline in Brent crude oil prices since the beginning of August reflects market participants’ scepticism about sustained high oil prices:
→ this has a negative impact on the US economy (JP Morgan analysts raised concerns about recession risks this week);
→ increased activity from oil producers may offset supply chain disruption risks.
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