Brent crude oil is trading above $71 per barrel today, reaching its highest level since late February. The XBR/USD chart indicates that the price climbed by around 2.6% on the final day of March.
What’s Driving Oil Prices Higher?
The latest price increase is largely influenced by geopolitical developments concerning Russia and Iran. According to Trading Economics:
➝ Trump has warned of imposing tariffs between 25% and 50% on buyers of Russian oil if he believes Moscow is hindering his efforts to end the war in Ukraine. This move could put pressure on major importers like India and China.
➝ He has also threatened Iran with additional tariffs and military strikes until the country agrees to abandon its nuclear weapons programme.
These developments have fuelled concerns among traders about potential disruptions to global oil supply chains, contributing to the rally in Brent crude prices.
XBR/USD Technical Analysis
In early March, Brent crude formed a bullish Double Bottom pattern (with lows recorded on 5 and 11 March), setting the stage for an upward trend within a rising channel (marked in blue).
Key technical observations on the XBR/USD chart:
➝ The price has moved into the upper section of the channel.
➝ It has broken past the key resistance at $70.25, a level that previously acted as support multiple times (highlighted with arrows).
If the current trend holds, the midline of the channel—reinforced by the $70.25 level—may now serve as support, keeping Brent crude on an upward trajectory. However, further price movements will likely be influenced by geopolitical developments and policy decisions from the White House.
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