Oil prices have recently increased due to new supply disruptions and improved economic data. Initial declines in crude oil prices stemmed from higher supply expectations and concerns over weakening demand.
The rise in prices follows the imposition of fresh US sanctions on Iranian oil and threats of tariffs on countries buying Venezuelan oil. Better-than-expected US economic data, particularly the Purchasing Managers’ Index (PMI), has contributed to a more optimistic market sentiment.
Crude Oil Resistance Levels
Crude oil has surpassed key resistance levels, attracting buyers who are now eyeing the $72.00 resistance zone. A failure to maintain upward momentum may encourage sellers to target lower prices.
A breakout above the strong resistance zone at $68.00 on the four-hour chart suggests potential for further gains. If prices drop below this level, sellers may regain control, focusing on a support level around $64.00.
The one-hour chart indicates ongoing bullish momentum, with potential support from a minor upward trendline. This week’s economic data releases, such as the US Consumer Confidence report and US Jobless Claims, may further influence market direction.
Brent crude’s recent climb can largely be attributed to fresh supply concerns and a brighter economic outlook in the United States. Sanctions on Iranian exports, coupled with potential tariffs on buyers of Venezuelan oil, have introduced new constraints on available supply. Meanwhile, stronger-than-expected economic indicators, such as the US Purchasing Managers’ Index, have lifted sentiment.
Before this shift, downward pressure on prices emerged due to expectations of increased supply and doubts surrounding future demand. That sentiment has now reversed, driving crude above key technical levels. The breach of $68.00 on the four-hour chart signalled strength from buyers, with attention now turning to the $72.00 resistance area. Whether price sustains these gains remains to be seen. If momentum fades, participants looking for lower prices may regain control, potentially targeting the $64.00 level.
Short Term Market Trends
Shorter-term charts further highlight underlying buying pressure. The one-hour timeframe suggests an ongoing bullish push, supported by an ascending trendline. However, macroeconomic influences remain in play. Reports such as US Consumer Confidence and Jobless Claims are set for release in the coming days, both of which could sway sentiment.
While technical factors indicate a market favouring strength, traders must remain aware of shifting conditions. External variables such as supply disruptions and economic performance could alter expectations quickly. Should the bullish momentum persist, higher resistance levels may come into focus. If not, newfound optimism could fade almost as quickly as it emerged.
