Brent Crude Headed for Third Monthly Decline: What Are the Future Outlooks?

Brent Crude Oil at the Core Level

Brent crude futures fell to around $64 a barrel on Friday, heading for their third consecutive monthly decline, pressured by rising global production ahead of the OPEC+ meeting.

A stronger US dollar also weighed on commodity prices.

The organization is expected to increase production modestly by 137,000 barrels per day in December as part of its strategy to regain market share.

The increased supply will also mitigate the impact of Western sanctions that have disrupted Russian oil exports to China and India, its largest buyers.

Meanwhile, President Trump stated that China has agreed to resume purchases of US energy, including a potential large oil and gas deal from Alaska.

Brent Crude Oil Technical Analysis

Oil is attempting to form an inverted head and shoulders pattern on the 4-hour timeframe. A break above the neckline around $66.00 per barrel could open the way for further gains towards $67.50 per barrel as an initial target, followed by key resistance levels at $69.30 per barrel.

This scenario would be invalidated if the neckline breaks down again and a 4-hour candle closes below it.