Oil Prices Potential for Largest Weekly Gain in 3 Months
Global crude oil prices rose slightly in trading on Friday (September 26th), driven by concerns about supply disruptions from Russia and geopolitical tensions in the region. However, investors remain wary of the potential for additional supply from Iraq, which could dampen the price rally.
WTI oil prices are currently hovering around US$65.20 per barrel, while Brent is trading near US$69.15. Both are poised to post their largest weekly gains in three months.
Russia has reportedly restricted fuel exports due to infrastructure disruptions, fueling concerns about tightening global supply. Meanwhile, Ukrainian drone attacks on Russian energy facilities have further heightened tensions in the energy market.
However, the market is also weighing positive news from the Middle East: an agreement to resume oil flows from the Iraqi Kurdistan region, which could increase supply by around 230,000 barrels per day. This additional supply has the potential to curb sharp price increases.
Technically, WTI prices remain above their 5- and 20-day moving averages, indicating that the short-term trend remains positive. Momentum indicators such as the RSI and MACD are also pointing towards the bullish zone, although approaching the overbought area.
Key levels to watch today are support at US$63.50-64.50 and resistance at US$66.50-67.50. If the price breaks through resistance, the opportunity for a further rally is wide open, while a drop below support could trigger profit-taking.
For Brent, the technical trend remains positive, with the price remaining above the 20-day moving average (MA) and 50-day moving average (MA). The RSI indicator is in the 65-70 range, indicating that momentum remains bullish but approaching the overbought area.
Nearest support is seen at US$68.30-68.70, while resistance is at US$70.20-71.00. A break above US$71.00 has the potential to open up room for upside towards the US$72.50 area, while a drop below US$68.30 could trigger a correction to US$67.50.
Analysts predict oil prices will continue to fluctuate following geopolitical developments and US crude stockpile data. If there are additional supply disruptions or a significant drop in inventories, prices could potentially strengthen further. However, news of increased production or weakening global demand could trigger a correction.
Source: Newsmaker.id
