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Brent climbs toward $100 as Middle East tensions disrupt oil supply
Brent rose to a new multi-week high after attacks on Saudi energy facilities raised the risk of wider regional conflict and greater uncertainty for flows near the Strait of Hormuz.
Brent futures moved to a new multi-week high, edging toward the psychological $100 per barrel level as fresh escalation in the Middle East threatened to disrupt supply through the Strait of Hormuz.
Action Forex said the latest pressure followed attacks on energy facilities in Saudi Arabia by the Houthis in Yemen, which it described as backed by Iran. The outlet added that the risk of the conflict spreading across the region is increasing uncertainty for oil markets.
The report noted that a breakout above a recent three-day congestion pattern signaled continuation of a larger rally from an Aug. 5 low of $78.10, with the move also exposing the $100 barrier. It warned that headwinds around $100 should be expected given resistance and overbought conditions on the daily chart.
Action Forex also pointed to technical levels, saying the move had broken the Fibo 76.4% level at $96.34 and that a former top near $94.81 had reverted to support, which it expects to help protect the downside if current conditions persist.
Latest closeBrent $95.32 ▲0.7%