Brent Crude Falls Below the $100 Mark

Brent crude slipped back below the $100-per-barrel mark on Friday, surrendering much of the previous session’s 5.5% surge as market sentiment remained highly volatile and driven by rapidly shifting geopolitical developments.

Concerns over prolonged supply disruptions following renewed signs of escalation in the US-Iran conflict eased after reports that EU nations were preparing to release 50 million barrels of diesel from strategic reserves, with an additional 50 million barrels expected to come from members of the International Energy Agency (IEA).

While the move is unlikely to provide more than temporary relief, it is aimed at curbing soaring fuel prices amid an acute shortage of refined products. The supply crunch has been exacerbated by Russia and China halting diesel exports, while the United States has signaled it could take similar measures, leaving European consumers increasingly vulnerable and raising concerns about further disruption to diesel supplies.

The latest decline has weakened the broader bullish outlook, with downside momentum gathering pace. A weekly close below the psychologically important $100 level would leave Brent exposed to further losses, bringing key near-term support at $95.11, the September 30 higher low, into focus.

On the weekly chart, price action formed a Doji candlestick following two consecutive weeks of losses, highlighting market indecision as traders assess the evolving geopolitical landscape before committing to new positions. With uncertainty remaining elevated, geopolitical developments are expected to continue driving price action in the near term.

Res: 100.00; 101.23; 101.65; 101.97
Sup: 97.67; 96.55; 95.11; 93.94