Oil Strengthens Amid Geopolitical Tensions and Oversupply
Oil prices held steady on Tuesday (December 30th), with Brent hovering around $62 per barrel and West Texas Intermediate (WTI) above $58. Geopolitical tensions, such as those between Venezuela, Russia, and Iran, supported prices, despite concerns about a global oversupply. Venezuela began shutting oil wells due to a US blockade, resulting in full oil storage. Meanwhile, Trump confirmed a US attack on Venezuelan facilities and vowed to attack Iran if the country continues its nuclear program.
Despite geopolitical pressure, global oil production continues to rise, with OPEC+ increasing output to regain market share. The oversupply is further evident with the increasing amount of oil stored on tankers that have been idle for more than seven days. In the US, data showed that crude oil stocks at Cushing, Oklahoma, saw their largest increase since October. However, the market remains eager for further data from the API and the US government to clarify oil stockpiles in the coming weeks. (az)
The oil price at the time of this analysis is $61.77
- Buy if the price moves within the $61.87 range
- Sell if the price moves within the $61.67 range
Resistance 2: $62.07
Resistance 1: $61.97
Support 1: $61.57
Support 2: $61.47
Disclaimer
This article is analytical in nature and is not a definitive reference. Please consider fundamental and technical developments in trading before making any investment decisions.
Source: Newsmaker.id
