Brent Gap Up, a Hot Signal from the Middle East
Brent prices opened sharply higher on Monday (July 20th), as evidenced by a gap up at market open. Based on the daily chart, Brent opened at around US$88.65 per barrel, with a temporary high of US$88.79 and a low of US$88.15. This movement indicates buyers entered the market early in the session.
Technically, the US$88.15 area is the closest support area to watch. As long as the price remains above this area, Brent's bullish momentum remains quite strong. However, if the price falls and breaks through US$88.15, a correction could open up to close the gap to the US$87.30 to US$86.70 area.
From a resistance perspective, Brent is currently testing the US$88.80 to US$89.00 area. If this area is successfully broken, the next target could potentially be US$90.00 to US$91.40. However, momentum indicators are already in very high territory, so the potential for profit-taking remains a concern after the rapid rise.
Fundamentally, Brent's strengthening is still driven by escalating tensions between the United States and Iran. The escalating attacks in the Gulf have renewed market concerns about energy supply disruptions, particularly through vital routes like the Strait of Hormuz and the Red Sea.
Market concerns are growing because the conflict is not only targeting military targets but is also beginning to put pressure on energy infrastructure and shipping lanes. If security risks escalate, shipowners and logistics operators may become more cautious about entering the Gulf region, potentially disrupting global oil supplies.
As a result, Brent still has the potential to remain strong as long as geopolitical risks persist. However, excessively rapid oil gains could also trigger renewed inflation concerns, pressure the stock market, strengthen the US dollar as a safe-haven asset, and limit the potential for gold to strengthen as expectations of higher interest rates rise again. (asd)*
Source: Newsmaker.id
