Brent Crude Oil Faces Pressure, Tests Lower Boundary of Descending Channel

Brent crude oil is currently trading at $78.54, struggling to gain upward momentum as it tests the lower boundary of a descending channel that has been in place since early 2024. The price remains under the 50-day and 100-day moving averages, positioned at $82.38 and $83.37 respectively, highlighting the bearish sentiment prevailing in the market.

Fundamentally, Brent crude's price is being weighed down by concerns over global economic growth and the potential for reduced oil demand, particularly as major economies like China show signs of slowing down. Additionally, the possibility of the Federal Reserve cutting interest rates later this year could influence the dollar's strength, impacting oil prices indirectly.