Geopolitical Issues Lift Oil, But Will It Last?
Brent oil prices, currently hovering around US$59.80 per barrel, were boosted after US President Donald Trump ordered a total blockade of sanctioned Venezuelan oil tankers. This policy has heightened geopolitical tensions and resurfaced the risk of supply disruptions, despite Venezuela's relatively small global export contribution. The market believes a potential disruption of around 0.4–0.5 million barrels per day is sufficient to trigger a short-term rally, especially since prices previously fell to a five-year low.
However, from a broader fundamental perspective, this price increase remains fragile. Global oil demand has not yet recovered strongly, while global supply remains relatively tight. The buying that pushed up prices was also largely driven by technical factors after Brent fell below US$60, making it vulnerable to market players exploiting it to take profits or establish short positions. As long as the blockade doesn't expand or trigger a larger regional conflict, Brent's movement in the US$59-60 range is likely to be limited and potentially volatile again. (asd)
The oil price at the time of this analysis is $59.80
- Buy if the price moves within the $59.98 range
- Sell if the price moves within the $59.88 range
Resistance 2: $60.26
Resistance 1: $60.10
Support 1: $59.63
Support 2: $59.45
Disclaimer: This article is analytical and not a definitive reference. Please consider fundamental and technical developments in trading before making any investment decisions.
Source: Newsmaker.id
