Brent Strengthens, Supply Risk Premium Rises Again
Brent strengthened as the market added a supply risk premium again as geopolitical tensions escalated and strategic energy routes (such as shipping chokepoints) were deemed less secure. When the risk of shipping disruptions or potential attacks on energy infrastructure increases, traders tend to seek near-term contracts to secure supply, pushing Brent prices higher.
From a macro perspective, Brent was also supported by concerns about energy inflation, which kept global interest rate expectations tight for longer. High interest rates typically depress demand prospects, but in a supply shock phase, the supply narrative often outweighs demand. (alg)
Oil prices at the time of this analysis were released were at: $107.05
- Buy if the price moves below $107.29
- Sell if the price moves below $106.80
Resistance 2: $108.02
Resistance 1: $107.53
Support 1: $106.55
Support 2: $106.06
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
