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Brent holds near one-month high as Middle East tensions support oil
Brent was above $94 on Friday afternoon and was set up for a second straight weekly gain of almost 6%, with the piece noting risks that oil could push past $100 if supply disruptions emerge in the Gulf.
Brent crude continued rising and stayed near a one-month high on Friday, remaining above $94 and tracking for a second consecutive strong weekly gain of almost 6%, according to Action Forex.
The firm pointed to intensifying Middle East uncertainty, citing the US effort to impose tougher sanctions on Iranian oil exports while Iran keeps the Strait of Hormuz closed, along with threats of a strong response.
Action Forex said those conditions could increase the odds of further escalation, which in turn could trigger additional supply disruptions from major Gulf producers and lift oil prices above $100 per barrel.
On the technical side, the outlet said Brent reverted after a break of the $92.85 Fibo level, and that daily support levels around the daily cloud top near $91.41 could limit dips and support a renewed push higher.
Latest closeWTI crude $82.40 ▲1.4%|Brent $88.59 ▲1.8%