Crude Oil Rises: Middle East Tensions and Falling US Inventories
Oil prices have risen for the third consecutive day, driven by rising tensions in the Middle East and a significant decline in U.S. crude inventories. Brent crude rose to $78.39 per barrel, while West Texas Intermediate settled at $75.39. Concerns intensified after the assassination of militant leaders in the Middle East, generating speculation about possible retaliation that could disrupt oil supplies. In Libya, the declaration of force majeure at the Sharara oil field due to protests has added pressure to the market. In the U.S., crude inventories fell by 3.7 million barrels, well above expectations, indicating strong underlying demand. Analysts at ANZ and Citi suggest Brent could range between $80 and $85, driven by geopolitical and climate risks, and a cautious investor stance.
On the Brent chart, the most traded zone is between $84.10 and $80.88. After a double indecision at the beginning of the week, a price rally was seen yesterday. Today, the market may show signs of a return to the mean. The RSI, still in the oversold zone at 39.50%, and the POC at $82 suggest possible moves toward the mean, with a high zone at $95 and a low zone at $71.47.
Ion Jauregui - ActivTrades Analyst
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The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
On the Brent chart, the most traded zone is between $84.10 and $80.88. After a double indecision at the beginning of the week, a price rally was seen yesterday. Today, the market may show signs of a return to the mean. The RSI, still in the oversold zone at 39.50%, and the POC at $82 suggest possible moves toward the mean, with a high zone at $95 and a low zone at $71.47.
Ion Jauregui - ActivTrades Analyst
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
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