The Brent crude oil outlook turns on overbought momentum, slowing oil demand growth and attacks on energy infrastructure ahead of key elections.
Razan Hilal, StoneX Media Market Analyst, walks through the Brent crude and energy sector ETF charts and the escalation and de-escalation scenarios in play. The Energy Select Sector SPDR Fund (XLE) has pushed above an 18-year resistance, though a bearish divergence on its monthly RSI raises the risk of a false breakout.
Trump waiving Russian sanctions adds to the pullback case for crude, while the upcoming U.S. and Israel elections keep near-term escalation risk in focus.
This content was created by an affiliate of FOREX.com and represents the views and opinions of the author/speakers, not the views and opinions of Forex.com, StoneX Group Inc., or its subsidiaries. The content has not been independently reviewed by Forex.com.
X: @Rh_waves