Brent Oil Price Rebounds Amid US-Iran Talks Concerns
The Brent oil price has recovered from its three-and-a-half-week low on Wednesday due to renewed concerns about the failure of US-Iran talks. This development offset the positive news of recovering supplies from the Middle East, according to Goldman Sachs' latest report, which states that oil exports doubled in September and reached a 2025 average.
The Brent December contract peaked near $99 per barrel, while the November contract is trading at $103.15, resulting in the widest gap between the two benchmarks in four months. This discrepancy is driven by expectations of a US ban on diesel exports that would lead to oversupply and ease pressure.
Despite the price holding below $100 for the second consecutive day, which adds to the developing negative signal from strengthening bearish momentum on the daily chart, the formation of a bullish engulfing pattern may provide some counterweight. However, it is essential to validate this signal by lifting above $100.