Brent Oil dropped 3.4% on Wednesday. A break under the September low of $84.06 would intensify downside pressure, strategists at MUFG Bank report.

Lower oil prices alleviate the negative terms of trade shock on EUR, GBP and JPY

“Weak growth is a possible factor but in addition, the speculation of a Saudi-led push for a production increase could still be weighing on crude oil prices.”

“Lower crude oil prices and still low natural gas prices alleviate considerably the negative terms of trade shock on the Euro, Pound and Japanese Yen.” 

“A close in Brent below the September low of $84.06 would be a technically bearish signal.”