Oil Surges as Houthi Attack Disrupts Saudi Pipeline

Oil prices rose sharply during Monday's trading (Sept 14), with Brent climbing to around US$107.8 per barrel and WTI to approximately US$103.2. The rally was triggered by a Houthi drone attack on Saudi Arabia's East-West pipeline, a crucial route for diverting oil exports away from the Strait of Hormuz. Disruption to the pipeline has heightened supply concerns, particularly as some Middle Eastern oil flows remain constrained by ongoing conflict in the Hormuz region.

Fundamentally, the bias for oil remains bullish as long as supply disruptions and geopolitical tensions persist. Fresh attacks in Hormuz, the postponement of diplomatic meetings in Oman, and the disruption of the Saudi alternative route have kept risk premiums elevated. However, with oil prices already exceeding US$100, there is an increased risk of global inflation and a potential slowdown in demand; consequently, a short-term correction remains possible should news regarding diplomacy or infrastructure restoration emerge. (mrv)

Brent oil price at the time of this analysis: $107.79

- Buy if the price moves to $107.84

- Sell if the price moves to $107.74

Resistance 2: $109.47

Resistance 1: $108.20

Support 1: $105.92

Support 2: $104.91

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.

Source: Newsmaker.id