Brent crude oil corrects, but downside risks remain

Brent prices are rising after bouncing off the 72.25 USD support level. Discover more in our analysis for 3 April 2025.

Brent forecast: key trading points

• Brent is recovering after a sharp decline
• US crude oil inventories unexpectedly rose by 6.165 million barrels last week
• Market attention turns to the upcoming OPEC+ meeting
• Brent forecast for 3 April 2025: 70.30 USD

Fundamental analysis

Brent quotes are rebounding on Thursday following a steep drop on Wednesday. The decline was triggered by US President Donald Trump’s announcement of new tariffs, fuelling fears of an escalating global trade war. Investors are now concerned that the global economic outlook could be revised downwards due to the higher-than-expected tariffs.

Additional pressure on Brent prices came from an unexpected increase in US crude inventories. According to the latest data, stockpiles rose by 6.165 million barrels over the week, while analysts had forecast a drop of 3.053 million barrels. The increase is attributed to higher imports from Canada.

The market is now focused on the upcoming OPEC+ meeting at the end of the week, which is expected to provide guidance on the outlook for the global oil market.

Brent technical analysis

Brent prices consolidated below the Moving Averages, indicating the dominance of sellers and increasing the likelihood of a continued downtrend. Prices are currently testing the 73.05 USD resistance level. Today’s Brent forecast suggests a rebound from this level and a move down towards 70.30 USD. The Stochastic Oscillator supports the bearish scenario, with divergence forming near the overbought area – a sign of a likely bearish impulse.

Summary

Brent quotes are recovering from the decline, but concerns over the global economic outlook and rising US crude inventories continue to weigh on the market. Today’s Brent analysis points to sustained downside pressure, with a potential move towards 70.30 USD.