Ukraine-Russia War Supports Oil Movement
World oil prices rose on Tuesday (September 2nd), triggered by the escalation of the Russia-Ukraine conflict. Brent and WTI surged after a Ukrainian drone attack crippled Russian oil processing facilities, which account for a significant portion of supply capacity. This situation sparked concerns about global supply disruptions and prompted investors to return to the energy market.
Although geopolitical sentiment lifted prices, the medium-term outlook remains clouded by a production surplus. Surging output from the United States and other producers is expected to create a supply glut of up to 1.8 million barrels per day through 2026, risking pushing Brent to the US$50s. Technically, indicators show a bullish trend with a "strong buy" signal, although prices are approaching overbought territory, potentially triggering a short-term correction. (mrv)
Oil prices at the time of writing were at $68.46.
- Buy if the price moves around $68.51
- Sell if the price moves around $67.41
Resistance 2: $68.75
Resistance 1: $68.61
Support 1: $68.31
Support 2: $68.17
DISCLAIMER
Note: This article is analytical only and is not a definitive reference. Consider fundamental and technical developments in trading before making any investment decisions.
Source: Newsmaker.id
