Crude Oil Rally Continues Despite Weak US Demand
Crude oil prices are poised to continue their two-week rally amid escalating tensions in the Middle East, particularly between Israel and its neighbors, including Lebanon. This geopolitical unrest has intensified fears of a broader regional conflict, prompting oil traders to adopt a bullish stance. Earlier today, Brent crude approached $87 per barrel, while West Texas Intermediate (WTI) exceeded $82 per barrel.
Despite these price increases, demand for oil in the United States remains tepid, as indicated by the latest data from the Energy Information Administration (EIA). This week, the EIA reported an increase in inventories for crude oil, gasoline, and middle distillates, suggesting that supply is outpacing demand.
This complex scenario underscores the delicate balance in oil markets, where geopolitical risks often drive prices independently of traditional supply and demand dynamics. As traders monitor these developments, the potential for further price volatility remains high, influenced by both the geopolitical landscape and underlying economic indicators.
Prices are coming down after early gains following the PCE data release. The next support level is at 80.4, while the first resistance target will be 82.5, followed by 84.
Resistance 3 |
Resistance 2 |
Resistance 1 |
Support 1 |
Support 2 |
Support 3 |
84 |
82.5 |
81.00 |
80.4 |
78.30 |
77.65 |