Brent Drops; Supply Risks Remain High

Oil prices softened during Friday's trading (Sept 11) but still posted a gain of over 7% for the week, while US diesel prices hit record highs due to fears of prolonged supply disruptions in the Middle East. Brent and WTI had previously surged more than 6% on Thursday following escalating attacks on tankers near the Strait of Hormuz. Iran claimed to have attacked 10 vessels in the region after the US struck five Iranian oil tankers, while the number of ships passing through Hormuz dropped to just seven on Thursday—well below the 10-day average of 15 vessels. Prices subsequently retreated following reports that Middle Eastern foreign ministers were discussing an interim agreement with Iran to ensure the smooth flow of shipping through the Strait of Hormuz.

Supply risks remain elevated after the Iran-backed Houthi group seized the port of Mocha in Yemen, and attacks on Saudi energy facilities expanded the threat from Hormuz to the Red Sea region. The International Energy Agency (IEA) projects that global oil supply and demand this year will be lower than previously forecast, as the conflict involving Iran delays the normalization of Middle East energy flows until 2027. Surging energy prices are also raising concerns about global inflation; two European Central Bank officials have even signaled the possibility of further interest rate hikes if rising energy costs continue to spill over into the prices of goods and services across the Eurozone. (arl)

Brent oil price at the time of this analysis: $103.73

- Buy if the price moves to $103.98

- Sell if the price moves to $103.12

Resistance 2: $105.30

Resistance 1: $104.47

Support 1: $102.63

Support 2: $101.93

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

Source: Newsmaker.id