Brent Crude Oil: Demand Worries in China Keep Bulls on the Defensive
Fundamentals:
Brent faces downward pressure from deteriorating demand indicators in China. Industrial output and retail sales growth have slowed, raising concerns about the near-term outlook for crude imports. While the temporary 90-day tariff reprieve between the U.S. and China offers limited support, it has not yet translated into material demand recovery. Iranian supply prospects and cautious investor positioning in response to geopolitical developments further restrain bullish sentiment.
Technical Analysis:
Brent futures are struggling to break above a key resistance zone between $66.74 and $68.69, aligned with the downward-sloping 50-day simple moving average at $67.41. This level has consistently capped rallies. Price remains boxed in a sideways range, with no clear directional signal unless the market pushes above or below these levels decisively. Momentum remains neutral to bearish in the short term.
