Global Oil Prices Correct; Hopes for U.S.–Iran Peace Weigh on the Market!

Global oil prices underwent a correction during Monday’s trading session (Nov 2) as hopes for a diplomatic resolution to the conflict between the United States (U.S.) and Iran grew. This decline followed three consecutive days of talks between Iranian and Qatari officials aimed at finding a way out of the Middle East conflict. The prospect of an agreement has led market participants to trim some of the geopolitical risk premium that had previously supported higher oil prices.

Nevertheless, the downward pressure on oil prices is expected to remain limited due to security uncertainties in the Strait of Hormuz and the potential for military escalation following the U.S. midterm elections on November 3. Attacks on oil tankers and the threat of disruptions to energy supplies have kept the market cautious.

Brent Oil price at the time of this analysis: $111.18

- Buy if the price moves to $111.49

- Sell if the price moves to $110.86

Resistance 2: $112.12

Resistance 1: $111.79

Support 1: $110.53

Support 2: $110.23

Note: This article is analytical in nature and does not constitute a definitive recommendation. Please consider the impact of fundamental and technical developments on trading before making any investment decisions.