Oil Prices Drift Lower Amid Geopolitical Tensions and U.S. Inventory Data
Global oil prices moved volatilely today, with Brent trading around US$ 94.7 per barrel and West Texas Intermediate (WTI) near US$ 92.8 per barrel, reflecting pressure from geopolitical uncertainty and market reactions to hopes for peace in the Middle East. Tensions between the United States and Iran remain unresolved, keeping the Strait of Hormuz under pressure and impacting global energy supply flows. (markets.businessinsider.com)
From a fundamental perspective, three main factors are driving oil prices. First, the ongoing conflict and threats of further disruption in the Strait of Hormuz heighten perceived supply risk. Second, recent U.S. crude inventory data showed sharp declines, indicating strong demand and refining activity despite the conflict, providing some support to prices. (reuters.com) Third, market hopes for a potential diplomatic resolution or reopening of export routes through Hormuz may cap sharp gains, often triggering profit-taking by speculators.
On the technical side, Brent and WTI show a sideways-to-slightly-bearish bias in the short term:
Key support for Brent is around US$ 92–93 per barrel, with next support near US$ 90 if selling pressure intensifies.
For WTI, strong support is around US$ 90–91 per barrel.
Nearest resistance for Brent is US$ 97–99 per barrel, while WTI faces resistance at US$ 94–96 per barrel. A consistent breakout above these levels could open room for further gains.
For the weekly close, oil prices are expected to trade in a limited range, with Brent closing around US$ 94–97 per barrel and WTI around US$ 92–95 per barrel, depending on U.S. energy inventory releases, Middle East geopolitical developments, and market reactions to any peace negotiations or conflict escalations. Traders are advised to stay alert to geopolitical headlines and weekly stock reports, as these can rapidly shift market sentiment.(mrv)
Source : Newsmaker.id
