US Inventories Surge; Brent Pulls Back, but Supply Risks Remain High!

Brent fell to around US$107.91 per barrel this morning after API data showed US crude oil inventories surging by 7.1 million barrels—contrary to expectations of a 1.6 million-barrel decline. This inventory build weighed on prices in the short term.

However, Brent's fundamentals remain relatively strong, as the Saudi East-West pipeline and shipments from Yanbu continue to face disruptions, while risks in the Strait of Hormuz and Houthi attacks remain elevated. Until supply issues are resolved, any correction in Brent prices is likely to remain limited.

Brent price at the time of this analysis: $107.91

- Buy if the price moves to $107.00

- Sell if the price moves to $105.20

Resistance 2: $113.00

Resistance 1: $110.50

Support 1: $104.00

Support 2: $102.00

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.