Key Points:
Oil prices rose on Friday, putting Brent and WTI on track for weekly gains exceeding 1%. Brent crude futures climbed 0.2% to $74.56 per barrel, while U.S. West Texas Intermediate (WTI) was up 0.2%, trading at $70.34 per barrel.
Picture: Crude oil faces resistance around $70.60 as traders assess market direction after a recent drop from $72, as seen on the VT Markets app.
Looking at the latest chart for CL-OIL, several key points stand out that are of interest to both seasoned traders and beginners.
The market opened at 70.318 and reached a high of 70.678 before closing at 70.353. The MACD shows a slight downward trend, indicating the possibility of consolidation after a recent drop from the high of 72.323.
Prices recently found support around the 69.753 level, while the 15-min moving averages (MA) suggest a bearish trend for now, though the price is currently hovering near its resistance level.
This price stability comes amid tensions in the Middle East and renewed Gaza ceasefire talks, leaving traders vigilant over potential disruptions in the world’s top oil-producing region.
Analysts maintain that the current “right price” for crude sits around $70, with market movements hinging on fresh developments, including China’s NPC Standing Committee meeting and Israel’s expected response to Iran’s October 1 missile attack.
While market expectations fluctuate with the changing dynamics in the Middle East, some anticipate Israel’s retaliation could affect Tehran’s oil infrastructure, posing a potential supply risk.
Middle East Tensions and Oil Price Movements
U.S. and Israeli officials are expected to restart ceasefire talks in the coming days, aiming for both a truce and the release of hostages in Gaza.
Previous negotiations have fallen through, and U.S. Secretary of State Antony Blinken indicated that Washington does not support an extended Israeli campaign in Lebanon.
See also: Oil Prices Steady After 7% Drop
French officials echoed these sentiments, pushing for a ceasefire and greater regional diplomatic efforts.
While ceasefire discussions may slightly weigh on oil prices, the main market focus remains on possible escalation in Lebanon and Israel’s response to Iran’s missile attack.
If the situation escalates, it could drive up prices further.
Outlook on Oil Demand from China and Price Forecasts
As global tensions simmer, investors are also closely watching Beijing’s potential stimulus measures for signs of increased oil demand.
However, analysts expect minimal impact from Chinese policy shifts, as larger influences on oil demand include Middle East supply and winter weather.
Goldman Sachs maintained its oil price forecast, predicting Brent crude within a $70 to $85 range, with natural gas and coal prices also holding steady in its outlook.
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