Brief Overview of Events and News Explaining the Potential Decline of Brent Oil Price to $50 in the Near Future.
➖ Increased OPEC+ Production:
On April 3, 2025, eight OPEC+ countries unexpectedly decided to accelerate production increases, adding 411,000 barrels per day starting in May. This decision triggered a price drop, with Brent falling 6.42% to $70.14 per barrel at the time.
Analysts like Amrita Sen from Energy Aspects noted that this move pressures “lagging” countries to meet quotas, but the market interpreted it as an oversupply signal.
Source: OilPrice.com, "OPEC+ to Raise Oil Production by More Than Expected in May," April 3, 2025 (oilprice.com/Latest-Energy-News/World-News/OPEC-to-Raise-Oil-Production-by-More-Than-Expected-in-May.html)
➖ Decreased Demand Due to Economic Challenges:
On April 14, 2025, OPEC revised its 2025 oil demand growth forecast downward by 150,000 barrels per day to 1.3 million barrels per day, citing trade tensions and weak economic indicators. JPMorgan also raised the likelihood of a global recession to 60%.
Source: OilPrice.com, "OPEC Lowers 2025 Oil Demand Forecast on Trade Tensions," April 14, 2025 (oilprice.com/Latest-Energy-News/World-News/OPEC-Lowers-2025-Oil-Demand-Forecast-on-Trade-Tensions.html)
➖ Trade Tariffs and Global Instability:
On April 3, 2025, U.S. President Donald Trump announced new tariffs on trading partners, heightening recession fears. Fitch Ratings described this as the highest level of U.S. import tariffs since 1910. Brent dropped 4% immediately following the announcement.
Source: OilPrice.com, "OPEC+ to Raise Oil Production by More Than Expected in May," April 3, 2025 (oilprice.com/Latest-Energy-News/World-News/OPEC-to-Raise-Oil-Production-by-More-Than-Expected-in-May.html)
➖ Geopolitical De-escalation:
On April 25, 2025, reports emerged of progress in U.S.-Russia talks on Ukraine, as well as Iran’s openness to nuclear negotiations. This reduces geopolitical risks and increases the likelihood of higher oil supply on the market.
Source: OilPrice.com, "Oil Set For Weekly Loss on OPEC+ Supply Rumors," April 25, 2025 (oilprice.com/Energy/Crude-Oil/Oil-Set-For-Weekly-Loss-on-OPEC-Supply-Rumors.html)
Technical Analysis Section:
The monthly chart shows similarities between the 1999–2002 and 2020–2025 periods: an initial impulse, followed by a correction, and then a 6-year upward trend.
Nearest entry point targets at the 161.8% Fibonacci level:
• $52,46
• $49,06
• $46,50
Growth Potential
Medium-term:
• $138,00
Long-term:
• $500,00
Once the price of oil UKOIL reaches $52.46, a review for the entry point will be prepared.
Charts:
•
•
➖ Increased OPEC+ Production:
On April 3, 2025, eight OPEC+ countries unexpectedly decided to accelerate production increases, adding 411,000 barrels per day starting in May. This decision triggered a price drop, with Brent falling 6.42% to $70.14 per barrel at the time.
Analysts like Amrita Sen from Energy Aspects noted that this move pressures “lagging” countries to meet quotas, but the market interpreted it as an oversupply signal.
Source: OilPrice.com, "OPEC+ to Raise Oil Production by More Than Expected in May," April 3, 2025 (oilprice.com/Latest-Energy-News/World-News/OPEC-to-Raise-Oil-Production-by-More-Than-Expected-in-May.html)
➖ Decreased Demand Due to Economic Challenges:
On April 14, 2025, OPEC revised its 2025 oil demand growth forecast downward by 150,000 barrels per day to 1.3 million barrels per day, citing trade tensions and weak economic indicators. JPMorgan also raised the likelihood of a global recession to 60%.
Source: OilPrice.com, "OPEC Lowers 2025 Oil Demand Forecast on Trade Tensions," April 14, 2025 (oilprice.com/Latest-Energy-News/World-News/OPEC-Lowers-2025-Oil-Demand-Forecast-on-Trade-Tensions.html)
➖ Trade Tariffs and Global Instability:
On April 3, 2025, U.S. President Donald Trump announced new tariffs on trading partners, heightening recession fears. Fitch Ratings described this as the highest level of U.S. import tariffs since 1910. Brent dropped 4% immediately following the announcement.
Source: OilPrice.com, "OPEC+ to Raise Oil Production by More Than Expected in May," April 3, 2025 (oilprice.com/Latest-Energy-News/World-News/OPEC-to-Raise-Oil-Production-by-More-Than-Expected-in-May.html)
➖ Geopolitical De-escalation:
On April 25, 2025, reports emerged of progress in U.S.-Russia talks on Ukraine, as well as Iran’s openness to nuclear negotiations. This reduces geopolitical risks and increases the likelihood of higher oil supply on the market.
Source: OilPrice.com, "Oil Set For Weekly Loss on OPEC+ Supply Rumors," April 25, 2025 (oilprice.com/Energy/Crude-Oil/Oil-Set-For-Weekly-Loss-on-OPEC-Supply-Rumors.html)
Technical Analysis Section:
The monthly chart shows similarities between the 1999–2002 and 2020–2025 periods: an initial impulse, followed by a correction, and then a 6-year upward trend.
Nearest entry point targets at the 161.8% Fibonacci level:
• $52,46
• $49,06
• $46,50
Growth Potential
Medium-term:
• $138,00
Long-term:
• $500,00
Once the price of oil UKOIL reaches $52.46, a review for the entry point will be prepared.
Charts:
•
•
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.