Crude Oil Prices: Fall as Brent Slips Below $80 and WTI Nears $74

Crude oil prices moved lower Thursday as signs of progress in Iran-related diplomacy reduced immediate supply fears, while an unexpected increase in U.S. inventories added pressure. October Brent crude traded at $79.08 a barrel, while September West Texas Intermediate fell to $74.69 as of 12:24 a.m. GMT on Aug. 6.

Why Are Crude Oil Prices Falling Today?

Oil traders are weighing the possibility that talks involving Iran and Oman could support broader negotiations between Washington and Tehran. Any agreement that improves tanker access through the Strait of Hormuz could remove part of the geopolitical premium built into Brent and WTI prices.

However, regional risks have not disappeared. Iran has warned that another attack could prompt retaliation against energy infrastructure, while uncertainty continues around tanker security in the Gulf.

U.S. supply data also weakened the near-term outlook. Commercial crude inventories rose by 2.5 million barrels to about 407 million barrels in the week ended July 31. Analysts had expected a decline of roughly 1.5 million barrels.

OPEC+ policy adds another bearish factor. The group approved a production increase of about 188,000 barrels per day for September, completing the planned return of voluntary supply cuts introduced in 2023. Traders are now waiting for clearer guidance on fourth-quarter output.

Brent Crude Tests a Four-Hour Demand Zone

Pipnotic’s XBR/USD chart shows Brent testing a demand area after retreating from several overhead selling zones. The setup suggests buyers may defend the current region, although a confirmed rebound remains necessary.

Brent Crude Four-Hour Demand Zone Near $79.67 Source: Pipnotic (@pipnotic)

The chart places Brent near $79.67, at the upper boundary of a demand zone extending to approximately $76.57. Pipnotic argues that buyers previously absorbed available supply in this region, leaving behind an area where buying interest could return.

Holding above $76.57 would preserve the possibility of a recovery toward resistance in the low-to-mid-$80s. A stronger advance could bring the former demand area between roughly $86.05 and $89.73 back into focus.

A four-hour break below $76.57 would weaken that scenario. Brent could then move toward support near $73.42, followed by the broader demand zone extending to approximately $69.30.

The chart uses XBR/USD, a broker-based Brent instrument, rather than the exact ICE Brent futures contract. Its levels should therefore be treated as technical reference points.

WTI Chart Points to Possible Support Near $70-$72

Viking’s WTICOUSD chart presents a more bearish short-term scenario. The analyst expects the decline to continue before WTI establishes a durable bottom, with the $70-$72 area identified as the main potential reversal zone.

 WTI Crude One-Hour. Source: Viking (@VikingEW)

The chart shows WTI near $76.29 after price failed to hold above resistance. The first recovery barrier sits near $77.80, followed by the more important $81.94 level.

Reclaiming $77.80 would reduce immediate downside pressure, but WTI would need to move above $81.94 to signal a stronger change in market structure.

Support appears near $73.40. A break below that level could send WTI toward Viking’s projected bottoming range between $70 and $72. The analyst does not expect oil to fall below $67, while the chart marks a deeper support level near $67.73.

For now, the outlook remains cautious. Brent must hold its $76.57 demand boundary, while WTI needs to reclaim $77.80 to avoid a deeper test of the low-$70s.