Oil Pushing Higher On Israel/Iran Attacks
Crude Higher on Monday
Crude prices are pushing higher again on Monday as traders react to news of Israel launching fresh missile attacks on Iran in response to claims it fired missiles at sites in Northern Israel. Traders are now nervously awaiting further developments with risks once again that the ceasefire breaks down. Indeed, the attacks come despite Trump pleading with Netanyahu to refrain from engaging and now calling no both sides to step back from taking any further action and to restart negotiations.
OPEC Hikes Production Again
The upside reaction in crude is perhaps being tempered somewhat by news that OPEC+ will increase oil production again next month. After meetings this weekend, the group announced it would step up next month’s production given that the US/Iran standoff shows no sign of being resolved and distribution through the Strait of Hormuz remains heavily compromise, keeping oil prices underpinned. The group will hike production by 188k barrels next month, higher level than the previously announced 180k increase in May. The move reflects continued uncertainty in the global market as a result of the Iran war and despite the bearishness of the announcement, oil prices remain vulnerable to continued upside given the massive amount of supply still being restricted each day that the Strait remains closed. Looking ahead, any news of further attacks between Iran and Israel will no doubt see price pushing higher still.
Technical Views
Crude
The market is once again testing the 95.06 level after being rejected there last week. If we do break above the level, 101.69 will be the next resistance to note ahead of the triangle highs above and the 108.86 level. To the downside, the triangle lows will be the key support to watch, with the 84.60 support beneath.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.