Oil Price Forecast: WTI and Brent Crude Analysis
Author: Muhammad Umair
Published: June 25, 2026
Key Points
- WTI crude oil has fallen below $80, with bearish momentum potentially pushing prices towards the $69 support level.
- Brent crude oil is under pressure as it approaches the $72–$74 support zone, targeting $68.
- The decline in oil prices is attributed to reduced supply fears in the Middle East following a peace agreement between the US and Iran.
Market Overview
Oil prices are experiencing downward pressure as concerns over supply disruptions in the Middle East diminish. The recent agreement to end hostilities between the US and Iran has led to increased tanker activity in the Strait of Hormuz, alleviating fears of a significant supply shock. As a result, both Brent and WTI crude oil prices are trending towards pre-war levels.
Technical Analysis
WTI Crude Oil
The daily chart indicates that WTI crude oil has broken below the $80 mark, with a continued slide towards the $69 level. The Relative Strength Index (RSI) has dipped below the midline, suggesting further downside potential in the coming days. A significant resistance level has formed at $80, which must be surpassed for any potential rally towards $87.
Brent Crude Oil
Brent crude oil is also facing strong bearish pressure as it nears the $72 to $74 range. The failure to maintain above the 200-day Simple Moving Average (SMA) indicates a likelihood of further declines towards $67.50. The weekly chart shows that Brent has broken below the 50-week SMA, with a potential drop to $68, which is supported by a descending trend line.
Market Sentiment
The current market sentiment is bearish, driven by the easing of the war premium and the expectation of improved oil supply from the Strait of Hormuz. Although a reduction in oil stocks typically supports higher prices, the market is currently prioritizing the resumption of oil flows over potential demand from the refining sector.
Conclusion
In summary, oil prices are likely to remain under bearish pressure as the geopolitical risks diminish and supply concerns ease. WTI crude oil is expected to continue its downward trend, potentially reaching the $69 range, while Brent crude oil may also decline towards $68. A clear reversal signal is necessary for any recovery in oil prices, which currently appears unlikely in the short term.