Global Oil Supply Disrupted, How Long?
Oil prices rose on Wednesday as the US-Israel war with Iran began disrupting Middle East energy flows. Brent rose $1.11 (1.4%) to $82.53/barrel and WTI gained 79 cents (1.1%) to $75.37/barrel, driven by concerns about Iranian retaliatory attacks on energy infrastructure and shipping disruptions in a region that accounts for nearly a third of global oil production. Supply pressure also came from Iraq, which has cut production by about 1.5 million bpd and risks shutting down nearly 3 million bpd if exports don't recover quickly, while traffic in the Strait of Hormuz remains congested after several ships were attacked.
Price gains were tempered by stabilizing signals from Washington: President Donald Trump has opened the option of tanker escorts and insurance/guarantee support for Gulf maritime trade, although industry participants doubt its effectiveness in restoring confidence. Countries and companies are starting to look for alternative routes/supplies (including export diversion efforts), while preliminary API data shows US oil stocks rose by 5.6 million barrels, which could stall the rally if confirmed by the official release. (asd)
Oil price at the time of this analysis is $82.49
- Buy if the price moves below $82.62
- Sell if the price moves below $82.29
Resistance 2: $83.34
Resistance 1: $82.91
Support 1: $81.95
Support 2: $81.71
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
