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 Brent crude oil prices have dropped to 71.41 USD at the beginning of the week, influenced by ongoing concerns over weak demand and geopolitical tensions. The fall in oil prices was somewhat mitigated by significant news from the Middle East, following the end of the Assad family’s five-decade rule in Syria. This political shift has raised fears of continued instability in a region crucial for global oil supply.Saudi Aramco, the world’s largest crude oil exporter, has responded to the weak demand by lowering prices for its Asian customers to levels not seen since early 2021. While prices for north-western Europe were also reduced, the costs for North American buyers remain unchanged. This strategic pricing adjustment reflects the varying demand dynamics across major markets.Last week’s decision by OPEC+ to delay its planned production increase until April next year, with quotas maintained until the end of 2026, underscores the cautious approach being taken by oil producers amid an uncertain market environment. Additionally, an increase in the number of operational oil and gas rigs in the U.S. over the past week adds further pressure to oil prices by potentially boosting supply.Technical analysis of Brent H4 chart: the Brent market is navigating a wide consolidation range centered around the 72.70 level. After extending upwards to 74.88, a downward correction towards 70.30 is anticipated. Should the market exit this range on the upside, a rise to 75.05 may occur, potentially leading to a continued upward movement towards 80.00. The MACD indicator, currently below zero and near its lows, suggests the potential for a rebound towards these higher levels. H1 chart: a consolidation range has been established around 72.22, with the  market currently trending downwards towards 70.30. Upon reaching this level, a reversal upwards towards 75.05 is expected. This bullish scenario is supported by the Stochastic oscillator, with its signal line positioned above 50 and aiming towards 80, indicating the likelihood of upward momentum resuming shortly.More By This Author:Gold Prices Dip But Remain Supported By Fed Rate Cut Expectations
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