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Market Analysis
Source: Newsmaker.id
Fundamentally, oil prices retain a bullish bias today as supply risks in the Middle East have not subsided. Brent is trading around US$106.9 per barrel and WTI around US$102.6, supported by the closure of Saudi Arabia's East-West pipeline, Houthi attacks, and increasingly restricted shipping traffic in the Strait of Hormuz. Delays in diplomatic talks between Iran and Gulf states mean the market sees no immediate solution to supply disruptions.
On the other hand, oil's upward momentum could be capped by expectations of tighter Federal Reserve policy and concerns that high energy prices will weigh on global growth. However, as long as the Saudi pipeline remains offline and the Hormuz and Bab el-Mandeb routes face disruptions, the geopolitical risk premium remains significant. Thus, for today, oil fundamentals lean bullish, though volatility is expected ahead of the Fed's decision. (mrv)
Brent price at the time of this analysis: $107.03
- Buy if the price moves to $107.08
- Sell if the price moves to $106.98
Resistance 2: $107.91
Resistance 1: $107.47
Support 1: $106.42
Support 2: $105.81
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