Crude Oil News | Will Crude Oil Prices Skyrocket in the Middle East Turmoil?

The latest crude oil news is in. The price of crude oil rose by more than one percent today. Prices rose sharply after US-led forces launched airstrikes in Yemen against the Iran-backed Houthi group, raising concerns about supply disruptions in the Middle East.  The US military launched airstrikes against several Houthi-controlled areas of Yemen late Thursday, according to media reports. The attacks came shortly after Iran seized a tanker carrying Iraqi oil in the Gulf of Oman.

Tensions with Iran and Houthi attacks have prompted several shipping companies to avoid the area, suggesting possible delays in crude shipments through the Suez Canal as per the latest crude oil news.

The war between Israel and Hamas, at the heart of recent instability in the Middle East, has also shown no signs of stopping. Persistent concerns about the Middle East supported oil prices in recent weeks, especially as markets feared that widespread conflict in the region would disrupt oil supplies in 2024. Brent crude rose 1.24% to $79.18 a barrel, while West Texas Intermediate crude rose. . In today’s trade, it rose almost 1.40% to 73.80 dollars a barrel.

In addition, Wednesday’s data showed that US consumer price index inflation rose slightly more than expected in December, dampening hopes that the Federal Reserve will begin cutting interest rates early this year. Earlier, Wednesday’s U.S. inventory data showed an unexpected increase in crude oil inventories, as U.S. EIA Weekly Distillates Stocks, gasoline and distillates inventories recorded a second week of large-scale builds as reported by the latest crude oil news. The reading showed that demand in the world’s biggest fuel consumer remained weak, and a severe winter storm continued to make travel difficult in the country.

Oil prices started the week weak after top exporter Saudi Arabia cut oil prices in Asia and parts of Europe as it struggled with increased competition and weaker demand.

crude strength this week was also boosted by the bid price after prices fell more than 10% in 2023 and continued to decline in the first week of 2024. Barring disruptions in the Middle East, the oil market is expected to be largely well-supplied. With record US output in early 2024, while demand is expected to weaken amid high interest rates and inflationary pressures.

China, a major oil importer, also expects weaker demand as the country’s post-COVID economic recovery struggles. December inflation and trade data will be released later on Friday and should provide further clues.

Technical Outlook – Crude Oil News:

The price of WTI crude oil settled at $72.77 per barrel yesterday, up 1.38%, and today rose 1.39% to $73.78 per barrel.

Since December 28, 2023, prices have stabilized between $74.40 and $70.15. This addition gives the shape of a symmetrical triangular pattern. Currently, prices are close to the top at $74.40, and slightly above that, oil prices may soon rise by more than 3-5%. In addition, prices are also trading above the 20 SMA.

All technical aspects above are bullish and oil prices will soon test the immediate resistance between $75.20 and $76.80. However, on the downside, there is crucial support at $72.50 and a potential pullback can only occur below it towards $71.55 to $70.55.

In addition, geopolitical risks in the Middle East continued to raise concerns about supply and growth, which are likely to support oil prices in the near term or vice versa.

Commodity Samachar
Learn and Trade with Ease

Also Read: Gold Surge: Will US Inflation Lead to Breaking of Key Support? , Will Today’s US Inflation Data Conjure Speculative Moves in the Market?

Recommended Read: Forex News Letter: What’s Brewing as US CPI Inflation Takes the Spotlight?

Want help on your traders?

Chat with our Analyst