Brent Crude Oil, WTI Crude News and Analysis
- Drone strikes hit Russian oil infrastructure, Israel hits Iranian targets in Syria
- OPEC’s JMMC meeting is unlikely to bring about any changes
- Oil prices rise, testing support levels in oversold regions
- See what our analysts are expecting for oil prices in the second quarter through our Q2 Oil Outlook below.
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Drone attack hits major Russian oil refinery, Israel attacks Iranian embassy in Syria
Iran has vowed to retaliate for Israeli attacks on Damascus that killed two Iranian generals and five military advisers. The attack threatens to escalate the conflict in the Middle East, more than five months after the conflict between Israel and Hamas in Gaza.
In addition, Ukraine launched a counteroffensive, attacking Russia’s oil infrastructure, a major source of war funding. The attack took place 1,300 kilometers from the front lines, but is said to have caused no major damage. Ukraine has targeted various Russian oil infrastructure in an effort to cut off Russia’s main means of financing its war against Ukraine.
OPEC’s JMMC meeting is unlikely to bring about any changes
OPEC’s Joint Ministerial Monitoring Committee (JMMC) is scheduled to meet online tomorrow, but a number of sources cited by Reuters say no changes are expected to production levels.
OPEC+ members led by Saudi Arabia and Russia met last month and decided to maintain voluntary production cuts of 2.2 million barrels per day (bpd) to support the oil market.
Oil prices now test $90 after Ukrainian drone attacks one of Russia’s major refineries
The oil market is highly dependent on fundamental factors such as supply and demand. Find out what else oil traders should know about this unique market.
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Oil prices rise, testing support levels in oversold regions
Brent crude oil continued to rise for four days after finding support at $85, recently hitting the $89 mark. Additionally, rising resistance also highlights an interesting intersection (highlighted in orange) between the horizontal level and the trend line. However, the oil market is dangerously close to overbought territory, and intraday price action has already revealed a slight pullback from the $89 mark, which could lead to a pullback in the oil market. There is sex.
Brent crude oil daily chart
Source: TradingView, Author richard snow
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WTI crude oil is also testing upward resistance below long-term resistance at $85.90/$86.00. Support moves back to $79.77 as the RSI appears to be moving a little away from oversold territory.
WTI crude oil daily chart
Source: TradingView, Author richard snow
— Written by Richard Snow for DailyFX.com
Contact and follow Richard on Twitter: @RichardSnow
https://www.dailyfx.com/news/brent-wti-reach-yearly-high-amid-escalations-in-russia-and-middle-east-20240402.html