Crude Testing Key Resistance As Rallies Grows
Oil Higher Midweek
Oil prices remain elevated today with the crude futures market gapping higher amidst reports that Iran made undisclosed attacks against the US on Monday. There are reports doing the rounds today regarding a series of Iranian attacks against US ships this week that have, as yet, not been disclosed by the US government. The reports highlight how precarious the situation remains between the two ides as well as Iran’s willingness to continue the war, going on the offensive not simply retaliating against US hostilities.
Energy Infrastructure Under Threat
Iran has also reportedly launched missiles towards Jordan and has warned ships in the Persian Gulf to exit the area or for tanker crews to abandon their ships. Additionally, Houthi rebels (aligned with Iran) have targeted energy infrastructure in Saudi Arabia including an attack on the Jazan refinery which is responsible for around 400k barrels of output per day. Against this backdrop, oil prices look vulnerable to continued upside near-term with price likely to spike in response to any news of a fresh escalation in violence between the US and Iran. For now, only a new ceasefire and a return to the negotiations table is likely to help bring oil prices meaningfully lower.
Technical Views
Crude
The rally in crude has sewen price pushing back up to test the 95.06 level, moving above July’s summer highs. With momentum studies bullish, focus is on a fresh push higher here with 104.26 the higher bull target to note. To the downside, 84.60 is the main support to watch with the bull outlook holding while that level remains intact.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.