Russia-Ukraine Tensions Boost Global Oil Market Sentiment
World oil prices rose again on Tuesday (September 2nd), driven by escalating geopolitical tensions in Eastern Europe. Brent crude rose 0.47% to US$68.47 per barrel, while WTI crude jumped 0.59% to US$64.97 per barrel. This increase was triggered by reports of a Ukrainian drone attack that disabled Russian oil processing facilities, sparking concerns about global supply disruptions.
However, the medium- to long-term outlook remains clouded by a supply surplus. Surging production from the United States and other producing countries has held back prices, even sending Brent crude down to around US$67.18 at the start of the week. Goldman Sachs estimates that the global surplus could reach 1.8 million barrels per day by 2026, potentially pushing Brent prices into the US$50s.
Technically, Brent crude is showing strong bullish momentum, with most indicators signaling a "strong buy." The nearest resistance is around US$68.80, but the RSI indicator is starting to approach overbought levels, indicating a potential short-term correction before prices potentially continue rising.
Overall, oil prices this morning were supported by geopolitical sentiment heating up the energy market, although the threat of a global supply surplus remains a factor holding back further gains.
Source: Newsmker.id
