Oil Price Soars Amid Storm Threat

Fundamental Analysis

* Raging Rafael: Oil prices have soared, driven by anticipated supply disruptions in the U.S. as Tropical Storm Rafael heads toward the Gulf of Mexico. Forecasts indicate that Rafael may strengthen into a category 2 hurricane, possibly halting around 4 million barrels of U.S. oil output this week. Major energy firms have already begun preparing, suspending offshore production and evacuating personnel. Additionally, the Organization of the Petroleum Exporting Countries and its OPEC+ allies announced a delay in their planned production increase, pushing it back from December due to weak demand and an increase in non-OPEC supply affecting market stability.

Technical Analysis

* Technical Breakout: Crude oil price was traded higher while currently testing the resistance level 71.75. MACD which illustrate bullish bias signal suggest the commodity to likely further extend its gains.

* Resistance and Support: If the bullish momentum persists, there’s a strong likelihood that the price will potentially head towards the level 75.50 after it breaks above the level 71.75. Conversely, a potential reversal is also to be expected and the price could head back towards 67.55.

Understand how technical analysis can help you in this trading opportunity.

Potential Risks

Looking ahead, attention now turns to the ongoing U.S. presidential election, where Democratic candidate Kamala Harris and Republican nominee Donald Trump are in a tight race across seven key battleground states. Recent polls showed Donald Trump and Kamala Harris largely neck-and-neck, with a clear outcome appearing uncertain.

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Monitoring

Stay updated on US data, updates on the U.S. Presidential Election, central bank updates and any shifts in the US Dollar’s strength by following PU Prime’s market insights and daily financial news.

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Disclaimer: Trading derivatives involves high risks, and market conditions can change rapidly. The content is for informational purposes only and should not be considered as financial advice. Traders should conduct their own research and consider risk management strategies.