Crude oil futures retreated slightly today as investors grappled with the prospect of supply disruptions due to the Middle East turmoil as per the latest crude oil news reports.
Israel produces very little crude oil, but markets are worried that the conflict could escalate and disrupt Middle East supply, worsening an expected deficit for the rest of the year.
U.S. officials have pointed fingers at Iran as being complicit in the Hamas attack on Israel, but credible evidence of the Islamic Republic’s role has yet to emerge.
Israel says it has razed sections of Gaza in retaliation for the Hamas assaults. Keeping markets on edge, powerful Iraqi and Yemeni armed groups aligned with Iran have threatened to target U.S. interests with missiles and drones if Washington intervenes to support Israel.
Top oil exporter Saudi Arabia said on Tuesday it is working with regional and international partners to prevent the escalation of the situation in Gaza and neighbouring areas, and reaffirmed it supports efforts to stabilise oil markets.
The U.S. dollar index eased to a two-week-low ahead of the U.S. Federal Reserve’s September policy meeting minutes due later today. A weaker dollar makes crude cheaper for holders of other currencies, which could drive up oil demand.
Several Fed officials in recent days have suggested that the U.S. central bank doesn’t need to raise borrowing costs any further.
In a more positive sign for supply, Venezuela and the U.S. have progressed in talks that could provide sanctions relief to Caracas by allowing at least one additional foreign oil firm to take Venezuelan crude oil under some conditions as per crude oil news.
Crude Oil News | Technical Outlook
Since Monday Crude oil prices have been consolidating in between gains and losses. Yesterday, prices settled at 7161 compared to the previous day’s close of 7184.
On the above chart, prices trading above crucial support 7020, coincided with 38.2% Fibonacci Retracement levels. It is indicating that crude oil prices may consolidate above it unless it gives a break below 7020 levels.
On the upside, massive resistance is seen at 7255 and a break above will expect to test 7352-7455 very soon. Alternatively, on the downside, crucial support is seen at 7020 a break below prices may retreat towards 6920-6800.00
Commodity Samachar
Learn and Trade with Ease
Also Read: Cluster of Inflation data and speech. What will impact this week?, Commodity Market News | US FED Meeting Minutes in Spotlight?