Brent Oil Posts Biggest Monthly Drop in 6 Years with 19% Decline in May

Brent crude oil experienced its largest monthly loss in six years in May, falling 19%. Technical indicators confirm the weakness: the RSI is near the lower end of the neutral zone at 47.8, the MACD is below zero and, although above the signal line, momentum remains weak. While the price is attempting to hold just above the 20-day moving average (91.55), the 50-day average (92.79) stands as resistance. The risk of a continued short-term downtrend is high.

The sharp monthly decline in Brent crude oil could put pressure on BP shares. The stock is trading below its 50-day moving average, with an RSI of 43 indicating weak momentum. The MACD remains below the signal line, suggesting negative short-term momentum. However, the possibility of finding support near the 20-day average may limit further downside. Without a recovery in oil prices, the stock could decline further.

The sharp decline in Brent crude is directly weighing on energy stocks such as CVX. Technical indicators confirm the weakness: the RSI is approaching the oversold zone at 41, while the MACD line remains below the signal line and in negative territory. The price is trading below both the 20-day and 50-day moving averages, which darkens the short-term outlook. The 1.3% drop in the last session suggests that selling pressure driven by oil may persist. However, since the market has not yet entered oversold territory, the pace of the decline could remain limited.

Exxon Mobil (XOM) shares have already lost more than 3% amid a sharp decline in Brent crude oil prices. Although the Relative Strength Index (RSI) has entered oversold territory at 27, the MACD and moving averages confirm a strong downtrend. This historic drop in oil prices will continue to pressure energy sector stocks. While a short-term technical rebound is possible, the fundamental outlook remains weak.