Brent crude futures are lower, as traders downplayed geopolitical tensions and temporary supply disruptions in the North Sea. Norway’s Equinor restored output at the Johan Sverdrup oilfield, which produces 755,000 barrels daily, alleviating immediate concerns over regional supply.
The Russia-Ukraine conflict continues to weigh on sentiment. Ukraine’s use of U.S.-supplied ATACMS missiles to strike Russian territory has heightened risks of supply disruptions from a major producer, keeping Brent prices above $70 per barrel.
On the demand side, concerns linger over rising U.S. crude inventories and potential global economic weakness. Yet, falling gasoline and distillate stocks in the U.S. suggest some resilience in consumption.
Brent prices are likely to remain sensitive to geopolitical developments and winter demand patterns. Analysts expect prices to hold above key support levels in the short term, with additional volatility likely from OPEC+ policy signals.
Technically, traders appear to be respecting support at $71.518 to $71.035. The latter, however, is a potential trigger point for an acceleration to the downside. Overcoming the 50-day moving average at $73.86 could trigger an acceleration to the upside.
