Middle East Risks Lift Brent
Brent oil strengthened on Wednesday (February 25th) and held near a 7-month high, as the market placed a risk premium ahead of the third round of US-Iran nuclear talks in Geneva (Thursday). The main concern: if tensions worsen, potential supply disruptions in the Middle East—especially strategic routes like the Strait of Hormuz—could cause prices to spike rapidly.
However, Brent's rally remained tight as the market was also plagued by restraining factors: surging US oil stockpiles according to the API (despite falling gasoline and distillate) signaled continued short-term supply slack, and market participants awaited confirmation from the official EIA release. So, Brent's current direction is more determined by the tug-of-war between geopolitical headlines (which are bullish) and inventory data (which are bearish). (alg)
Oil price at the time of this analysis is $71.17
- Buy if the price moves below $71.26
- Sell if the price moves below $70.08
Resistance 2: $71.53
Resistance 1: $71.35
Support 1: $710.99
Support 2: $70.81
Disclaimer:
This article is analytical in nature and is not a definitive reference. Please consider the influence of fundamental and technical developments on trading before making any investment decisions.
Source: Newsmaker.id
