Oil Prices Soar as Attacks on Energy Assets Raise Supply Concerns
Oil prices rallied after a series of attacks targeted some of the most critical energy facilities in the Middle East, fueling concerns that the impact of the conflict, which is nearing its third week, will worsen. The latest surge confirms that the market is starting to re-price the risk of greater supply disruptions, not only to shipping routes but also to energy production and export facilities.
Global benchmark Brent crude oil briefly rose by around 3.4% to $111.02 per barrel, while the most active WTI contract hovered around $98. US natural gas also surged by around 5.6%. Iran reportedly attacked a key LNG site in Qatar, part of Tehran's pledge to target regional energy assets following attacks on Iran's giant South Pars gas field and related facilities.
Oil prices have surged by around 50% since the war began, as the conflict wreaked havoc in the region, disrupting shipping in the Strait of Hormuz and cutting off some oil and gas production. However, previously, Iran's upstream energy industry was relatively "safe" from direct attacks, thus containing the potential for escalation that could impact long-term supply. The situation changed when attacks began to affect cross-border energy infrastructure, increasing the risk of physical damage that could slow the normalization of supply even after the conflict subsides.
Oil prices at the time of this analysis were released were at: $107.50
- Buy if the price moves below $106.50
- Sell if the price moves below $108.00
Resistance 2: $109.83
Resistance 1: $108.48
Support 1: $106.07
Support 2: $105.01
Note: This article is analytical in nature and is not a definitive reference. Please consider the influence of fundamental and technical developments on trading before making any investment decisions.
Source: Newsmaker.id
