Trending
Market Analysis
Source: Newsmaker.id
Oil prices rose sharply again at the start of trading this week after the escalation of conflict in the Middle East raised concerns about global supply. Brent briefly rose more than 3% to above US$108 per barrel, while WTI broke through US$103 per barrel. This strengthening occurred after recent attacks on Saudi Arabia and ships in the Gulf region again increased the risk of oil distribution disruptions.
From a fundamental perspective, the market's primary focus is on the Strait of Hormuz and Saudi Arabia's energy infrastructure. The closure of the Saudi East-West pipeline due to drone attacks has reduced the country's ability to divert oil exports away from Hormuz. At the same time, attacks on ships in the region have raised concerns that supply disruptions could be prolonged. This has led the market to place a higher risk premium on oil prices.
Supply risks are also increasing as the Bab el-Mandeb oil pipeline has been disrupted after the Iran-backed Houthi group increased its activity around the area. With more strategic waterways facing disruptions, the market is beginning to worry that the oil problems are no longer just temporary disruptions but could develop into longer-term supply issues. This is a major bullish factor for Brent and WTI in the short term.
Brent price at the time of this analysis: $107.96
- Buy if the price moves to $107.55
- Sell if the price moves to $108.15
Resistance 2: $109.00
Resistance 1: $108.50
Support 1: $107.30
Support 2: $106.93
Note: This article is analytical and not a definitive reference. Please consider the impact of fundamental and technical developments on your trading before making any investment decisions.
Source: Newsmaker.id