Brent crude oil price remained in a tight range on Hyperliquid as investors waited for President Donald Trump’s “final determination” on the Iran deal. It was trading at $92.40 on Sunday, down from last week’s high of $108.
Donald Trump requests edits to his ceasefire deal
Brent, the global benchmark, dropped to $92.40, with a 24-hour volume of over $20.7 million and an open interest of $296 million. The West Texas Intermediate (WTI) was trading at $88, with its volume rising to $37 million and the open interest rising to $179 million.
Oil prices have retreated in the past few weeks amid the rising hope that the US and Iran will reach an agreement soon. In a statement on Friday, President Trump said that he was going to the Situation Room for talks with his senior security officials. He did not say anything after that.
In a report, Axios noted that the president had requested edits to the proposal and that he was keen on finalizing the deal soon. Precisely, he wants more details on Iran’s nuclear program. As the deal stands, Iran promises not to pursue its nuclear weapons program, but Trump wants more, including getting the enriched uranium.
On the positive side, Axios confirms that the US and Iran will ultimately reach a deal to extend the ceasefire by 60 days. Such a move will see Iran reopen the Strait of Hormuz and the US end its blockade.
That move will lead to a surge in oil deliveries from the Middle East. Besides, millions of barrels of oil in tankers in the region will automatically come to the market. That will lead to more supply at a time when global inventories are plunging by over 4 million barrels a day.
The most recent data showed that US oil inventories dropped for the fifth consecutive week. According to the EIA, commercial crude oil inventories dropped by 3.3 million barrels from the previous week to 441.7 million barrels.
The US is now producing about 17 million barrels of oil per day, much higher than other key countries. It is also importing 5.2 million barrels per day. This production surge has helped to limit oil price surge during the war.
Brent crude oil price forecast
Brent crude oil price chart | Source: TradingView
Technical analysis suggests that crude oil price has more downside to go in the near term. It formed a double-top pattern at $114.97 and a neckline at $86.15, its lowest level on April 17. A double-top is a common bullish reversal sign in technical analysis.
Brent has dropped below the 38.2% Fibonacci Retracement level at $96 and the 50-day Exponential Moving Average (EMA). It also dropped below the Major S/R Pivot Point level of the Murrey Math Lines tool at $100.
Therefore, the most likely Brent crude oil price forecast is bearish, with the next target to watch being at $86. A move below that level will point to further downside, potentially below $60 during the ceasefire.
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