Crude Oil prices have continued their upward trend, driven by escalating tensions in the Middle East and concerns about potential disruptions to oil supply.
Key Factors:
- Israel-Iran Conflict: The ongoing conflict between Israel and Iran, with Israel considering retaliatory strikes on Iranian oil infrastructure, has increased geopolitical risks and supported crude oil prices.
- Supply Disruptions: A blockade of the Strait of Hormuz could significantly disrupt oil supply, leading to a potential price surge.
- US Dollar: The US Dollar (USD) has strengthened, which can generally weaken crude oil prices. However, the current geopolitical tensions are outweighing the impact of the stronger USD.
Technical Analysis:
- Upward Trend: Crude Oil prices have broken through multiple resistance levels, indicating a strong uptrend.
- Key Support and Resistance Levels: The 55-day Simple Moving Average (SMA) at $72.77 is a potential support level. Upward resistance levels are at $75.27, $75.77, and $77.10.
- Downside Support: Potential downside support levels are at $71.46, $70.00, and $67.11.
Overall Outlook:
Crude Oil prices are likely to remain volatile, influenced by geopolitical developments and the potential for supply disruptions. Traders should monitor technical indicators for signs of a trend reversal.