FX.co ★ Retired-Mogambo | CL/Crude Oil

As the Middle East crisis came back to dominate the market, the price of oil increased once more. Brent oil reached $101.70, and WTI oil reached $96.70 as a result of fresh attacks that raised worries about more supply interruptions to an all-time high. There is currently less chance of a swift ceasefire, which maintains a high risk premium in crude prices. The Strait of Hormuz is the main region of pressure. Since a sizable amount of LNG and oil go via this region, any disruption to this route would have considerable impact on global energy flows. To beat the summer demand, consumers can speed up their purchases if the closure continues. The rise was further aided by the U.S. inventories report. Crude stock levels fell more than anticipated, indicating strong demand for refining and exports. This is on top of concerns that if supply issues continue, global inventories might drop to critical levels. For the time being, oil prices are still rising. Prices may rise to the next resistance level if tensions between the United States and Iran worsen. The price of WTI crude oil recovered from the $87 support area and approached the $100 region, which is the trend line's resistance, according to the daily chart. WTI crude oil will move toward $105 if it breaks above $100. Additionally, prices will move toward $120 if they break above $105. On Thursday, the $94.50 to $94 area continues to provide immediate support. Oil prices could rise toward the $100 area on Thursday if this support continues. However, failing to maintain this level could render the short-term trajectory of the WTI crude oil market even more unpredictable. Overall, there is no discernible direction as the price has been consolidating between $80 and $120.