Brent: Lower prices with key supports – Societe Generale

FXStreet Insights Team FXStreet

Societe Generale’s Kenneth Broux and colleagues note Brent has dropped sharply after the US–Iran MoU and reopening prospects for the Strait of Hormuz, with prices down 35% from April peaks but still above pre-war levels. They highlight technical supports at $82/81, $78 and $75, and maintain a Brent forecast of $80 by end-2026 as oil flows normalise by January 2027.

Oil reprices on US Iran breakthrough

"Brent crude traded down to $82.7/b overnight, adding mild bull steepening impetus to govies as central bank rate hike expectations are pared back on both sides of the Atlantic."

"Technical levels are situated around $82/81, $78 and $75."

"Our house view assigned a probability of 35% for end of June re-opening of the SoH, oil flows normalising by Jan-27 and Brent trading at $80 by year-end."

"SG Brent forecast $80/b by end-2026 based end of June re-opening, oil flows normalise by Jan-27."

"The 200-DMA around $78 could be an important support."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

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