Oil Prices Rise As Investors Evaluate Middle East Risk

Fundamental Analysis

* Fueling Fears: Oil prices increased slightly during early Asian trading on Tuesday, recovering from losses seen in the prior session as investors remained vigilant in evaluating the potential impact of geopolitical tensions in the Middle East. Analysts pointed out that there are numerous risks still present in the oil market. ANZ analysts specifically highlighted the recent approval by the United States of new sanctions targeting Iran’s oil sector, which expand current sanctions to encompass foreign ports, vessels, and refineries knowingly involved in processing or transporting Iranian crude. On the other hand, the oil price also buoyed by the prospect of potentially tighter supplies in the coming months.

Technical Analysis

* Technical Breakout: Crude oil price was traded higher following prior rebound from the support level 80.80 and currently testing near the resistance level. MACD which illustrate bullish momentum signal suggest the commodity to further extend its upward momentum.

* Resistance and Targets: If the bullish momentum persists, there’s a strong likelihood that the price will potentially head towards 84.35 after the price manages to breach above the level 82.75. Conversely, a failure to breach above the level would indicate a technical correction and head back towards 80.80.

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Potential Risks

Moving forward, investors will maintain close watch on developments in the Middle East, particularly amid concerns about the potential for an Iran-Israel conflict. These apprehensions had propelled oil prices to nearly six-month highs earlier in April.

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Monitoring

Stay updated on Middle East developments, supply data 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.