Crude Spikes As Oil Tankers Targeted by Iran
Iran Attacks Oil Tankers
Crude prices are turning higher again today as traders react to news of further Iranian attacks on ships in the Strait of Hormuz. Overnight, two oil tankers in the area were targeted by Iran, with six ships now attacked in the last 48 hours. Along with news of the attacks, a spokesperson for the IRGC warned the US to expect oil at over $200 p/b as it vowed to continue attacks on any oil tankers attempting to pass the Strait. Meanwhile, Iran is reportedly doing a deal with China to allow for the safe passage of crude to China, a move that will surely provoke further ire from the US.
Crude Shrugs Off IEA News
With the war now on its 13th day and showing no signs of stopping, the near-term outlook for crude remains bullish. Indeed, the recent spike in oil prices comes despite the IEA confirming that it will release a record 400 million barrels from its emergency reserves, more than double the amount released in 2022. As such, the prospect of a furtehr push higher in oil now looks highly likely with crude set to jump in response to news of any further attacks from Iran on energy distribution infrastructure in the region.
Technical Views
Crude
The spike in crude today has been capped so far into a fresh test of the $95.06 level. With momentum studies bullish, however, focus is on a continuation higher while price holds above the $84.60 level with $101.69 the next bull target above.
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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.