Will geopolitical tension support oil prices?
- Kazakhstan planned to cut its oil output, while Russia reported lower production in Sep, restricting the supply.
- Meanwhile, the heightened geopolitical tension in the Middle East increases concerns over oil production and transport.
- At the same time, market participants remain optimistic about the US economy, which could support oil demand. Today's NFP release may provide insights regarding the US job markets.
- USOIL has significantly recovered from its low last month. The price retested its support at 67.50 USD per barrel before closing above its psychological support at 70.00 USD per barrel.
- If USOIL sustains its upward momentum, the price may retest the following resistance at 75.00 USD per barrel.
- On the contrary, USOIL may return to 70.00 USD per barrel if the price retraces before its continuation.
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