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Brent stays above $100 amid renewed Yemen, Ukraine and Hormuz risks
Brent held over the $100 level for a fifth straight day, after a Tuesday spike to $97.07 and a rebound on new supply fears.
Brent crude rose further on Wednesday as fresh geopolitical developments added uncertainty to global oil supplies, according to Action Forex. The report cited new clashes in Yemen, an attack by Ukraine on Russian oil refineries, and threats from Iran around closing “illegal routes” in the Hormuz strait.
The renewed tension boosted volatility after a short-lived period of relief. It also came ahead of decisions by the EU and the IEA to release strategic reserves of diesel, as diesel prices reportedly surged to record highs in the US and Eurozone, the outlet said.
Brent remained supported above $100 for a fifth consecutive day after a dip on Tuesday did not close below the key level. Action Forex also pointed to improving momentum, with a 14-day momentum measure turning higher and RSI moving above 50, while near-term price action was expected to stay biased higher as long as Brent holds above key technical levels around $100.5.
The outlet added that maintaining a sustained break above the 20-day moving average at $102.43 would be needed to preserve the bullish bias, and it flagged $103.95, the level of an Oct 1 top, as a threshold that would “bring bulls fully in play.”
Latest closeWTI crude $89.70 ▼1.6%|Brent $100.73 ▼1.5%