Brent Prices Drop, Peace Hopes Pressure Risk Premium
Brent oil prices fell sharply after the market responded to easing geopolitical risks in the Middle East. This was followed by hopes of a US-Iran deal that could reopen the crucial supply route in the Strait of Hormuz. This sentiment prompted market participants to begin shedding the war risk premium that had previously kept oil prices high.
Fundamentally, the main pressure on Brent came from expectations that oil supplies from the Gulf region could return more smoothly if tensions eased. The price decline was also reinforced by improving global risk appetite, as investors see the potential for reduced supply disruptions and energy inflationary pressures. (gn)
Oil prices at the time of this analysis were released were: $102.01
- Buy if the price moves below $102.04
- Sell if the price moves below $101.99
Resistance 2: $102.12
Resistance 1: $102.07
Support 1: $101.97
Support 2: $101.92
Note: This article is analytical in nature and does not constitute a definitive reference. Please consider the influence of fundamental and technical developments on trading before making any investment decisions.
Source: Newsmaker.id