Brent Oil Fund Slumps as Crude Breaks Supports; U.S. Stocks Drop 3.3M Barrels
BNO•Brent Oil Fund LP slumped as crude futures broke key moving averages and trendline support, targeting lower Fibonacci and moving-average zones while U.S. commercial oil stocks fell by 3.3 million barrels versus forecasts of a 4 million-barrel drop. Treasury Secretary Bessent warns markets will stay very well-supplied post-conflict.
1. Technical Breakdown
Brent crude futures broke key moving averages and trendline support, signaling extended bearish momentum. The move points toward lower Fibonacci retracement zones and additional moving-average supports that could stall further declines.
2. U.S. Inventory Report
Commercial crude-oil inventories in the U.S. fell by 3.3 million barrels last week, narrowly missing analysts’ forecasts for a 4 million-barrel draw. The smaller-than-expected reduction underscores persistent supply pressure on prices.
3. Supply Outlook
Treasury Secretary Bessent forecasts the oil market will remain very well-supplied once tensions in the Strait of Hormuz ease. Ongoing OPEC+ production and robust U.S. shale output are expected to keep global stocks elevated.
4. Ceasefire Implications
A pending U.S.-Iran ceasefire proposal awaiting approval could moderate price volatility and remove a key upward catalyst. Market participants are repositioning ahead of any formal agreement to gauge its impact on supply risks.
