**US OIL ANALYSIS**
***Fundamental Analysis*** The recent geopolitical tensions in the Middle East, particularly involving US and UK airstrikes on Houthi targets in Yemen, have heightened concerns over potential disruptions in the flow of oil. These actions come in response to attacks on tankers in the Red Sea by the Iran-backed Houthi group, raising fears that an escalation could impact the global oil trade, especially through key chokepoints like the Suez Canal and the Red Sea
The Middle East is crucial for the world's oil supply, accounting for a significant portion of seaborne oil trade. Any disruption in this region can have immediate effects on global oil prices due to concerns over supply shortages. For instance, recent events have led some ship owners to divert cargoes away from the Red Sea, potentially straining supply lines and increasing transportation costs. Such geopolitical risks often result in volatile oil prices, as markets react to the possibility of reduced supply and the uncertainties surrounding these tensions
Moreover, while the global oil market is considered well supplied for now, with non-OPEC+ production increases expected to outpace demand growth, the situation remains fluid. The market's sensitivity to these tensions highlights the interconnected nature of global oil markets and geopolitics. Investors and market watchers should closely monitor these developments, as they could lead to short-term price spikes or increased volatility, depending on how the situation unfolds and its impact on oil flow through critical maritime routes
***Technical Analysis*** Technically we are still in a downward trend, the latest bearish structure that took the price all the way down to 67.67 constitute the dominant part of the market.
On Friday we managed to mitigate the supply zone, from there price reacted quite violently pushing the price down once again, usually in this type of bearish trend scenario I would not consider a long, but the Fundamentals and the COT report (update coming later on today) may suggest a price reversal.
If that is the case, the demand zone created at the 70.79 zone may be the best candidate.
From there we can take price over the 80$ mark to finally break the local highs and start a new bullish trend
@everyone
***Fundamental Analysis*** The recent geopolitical tensions in the Middle East, particularly involving US and UK airstrikes on Houthi targets in Yemen, have heightened concerns over potential disruptions in the flow of oil. These actions come in response to attacks on tankers in the Red Sea by the Iran-backed Houthi group, raising fears that an escalation could impact the global oil trade, especially through key chokepoints like the Suez Canal and the Red Sea
The Middle East is crucial for the world's oil supply, accounting for a significant portion of seaborne oil trade. Any disruption in this region can have immediate effects on global oil prices due to concerns over supply shortages. For instance, recent events have led some ship owners to divert cargoes away from the Red Sea, potentially straining supply lines and increasing transportation costs. Such geopolitical risks often result in volatile oil prices, as markets react to the possibility of reduced supply and the uncertainties surrounding these tensions
Moreover, while the global oil market is considered well supplied for now, with non-OPEC+ production increases expected to outpace demand growth, the situation remains fluid. The market's sensitivity to these tensions highlights the interconnected nature of global oil markets and geopolitics. Investors and market watchers should closely monitor these developments, as they could lead to short-term price spikes or increased volatility, depending on how the situation unfolds and its impact on oil flow through critical maritime routes
***Technical Analysis*** Technically we are still in a downward trend, the latest bearish structure that took the price all the way down to 67.67 constitute the dominant part of the market.
On Friday we managed to mitigate the supply zone, from there price reacted quite violently pushing the price down once again, usually in this type of bearish trend scenario I would not consider a long, but the Fundamentals and the COT report (update coming later on today) may suggest a price reversal.
If that is the case, the demand zone created at the 70.79 zone may be the best candidate.
From there we can take price over the 80$ mark to finally break the local highs and start a new bullish trend
@everyone