Brent crude slide may extend as technical signals point to lower support levels

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Brent crude slide and support

Highlights

Brent crude's rally has stalled, with current prices testing key support at $93.25 to $95.25 and technicals signaling room for further declines.
If Brent posts a weekly close below the $93.25 to $95.25 support, next downside targets are $89–$90, $85–$86, and possibly $78–$80.
Oil prices remain highly reactive as hopes for U.S.-Iran de-escalation drive sentiment, but volatility persists and any rebound above $100–$101 challenges the bearish setup.

Technical levels signal room for further declines

As reported by Reuters, technical indicators suggest Brent crude's rally from July through October is currently exhausted, with price action now testing a critical support band. The recent decline pauses near the 50% Fibonacci retracement of that advance at $94.07, according to LSEG data, with additional support from the 200-day moving average near $93.84 and the 40-week moving average at $95.27.

Analysts typically view this kind of pause after a steep fall as consolidation, a phase in which the market digests the previous move before choosing its next direction. Momentum and volatility tools including the Relative Strength Index, MACD and Bollinger Bands all indicate that Brent can continue falling from current levels.

If Brent sustains a weekly move below support in the $93.25 to $95.25 area, the next downside targets stand in the $89 to $90 zone and then $85 to $86, where earlier highs and lows are located. A deeper decline would bring the $78 to $80 area into focus, before traders assess whether the market is settling into a broader $78-to-$118 trading range or entering another leg lower toward the July low near $70.

Geopolitical sentiment keeps oil market highly reactive

The latest slide in global oil prices follows renewed hopes for a cessation of hostilities between the U.S. and Iran, a shift that now dominates trading sentiment even though the history of the conflict suggests conditions can change quickly. That leaves crude markets highly sensitive to incoming headlines on the Iran war and related diplomacy.

Such volatility means downside and upside risks remain elevated despite the recent selloff. A rebound in Brent back above $100 to $101 would cast doubt on the current bearish outlook and raise questions about whether further declines can continue.

Previously, we examined WTO trade warning about how Middle East conflict and geopolitics can permanently reshape global supply chains.

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