Brent Crude Plummets 10% Amid Ongoing US-Iran Talks

The price of Brent crude oil has been plummeting over the past six days, dropping by 10% from its highest point this month. This decline has led to speculation about the end of the bull run in the oil market.

Despite the downward trend, technical analysis suggests that the upside for Brent is still intact. The price remains above the ascending trendline that connects the lowest swings in July and August 25, and is also above the 50-day Exponential Moving Average (EMA). The Supertrend is still green, indicating a bullish outlook.

The fall in crude oil prices can be attributed to the ongoing optimism about a deal between the US and Iran. However, officials have demanded that the US must go back to the Memorandum of Understanding (MoU), including ending the war in all fronts, end the blockade, and the release of its frozen assets.

Meanwhile, Goldman Sachs believes that China's oil imports will be subdued in the coming months if prices remain elevated. The bank predicts a moderate increase in imports by about 600k barrels a day in the fourth quarter, which would help to cap oil prices.