Oil prices rebound as growing political tensions fuel supply fears

Brent Crude

Brent Oil was trading 0.72% up at  $87.48.

Oil rose towards $89 a barrel on Wednesday, within sight of a seven-year high, supported by tight supply and geopolitical tensions in Europe and the Middle East that raise concerns about further disruption.

U.S. President Joe Biden said on Tuesday he would consider personal sanctions on President Vladimir Putin if Russia invades Ukraine. On Monday, Yemen’s Houthi movement launched a missile attack on a United Arab Emirates base.

“Anxiety over potential supply disruptions in the Middle East and Russia is providing bullish fodder for the oil market,” said Stephen Brennock of oil broker PVM.

Brent Crude rose 61 cents, or 0.7%, to $88.81 at 0917 GMT. On Jan. 20 it reached $89.50, the highest since October 2014.

U.S. West Texas Intermediate (WTI) crude was up 25 cents, or 0.3%, to $85.85.

“The market downside is limited due to heightened tensions between Russia and Ukraine and the threat to infrastructure in the UAE,” said Hiroyuki Kikukawa, general manager of research at Nissan Securities.

Underlining a tight supply and demand balance, the weekly U.S. inventory report from the American Petroleum Institute on Tuesday showed crude stocks fell by 872,000 barrels, market sources said

RSI Stood at 66.216, the current price is trading Above  All the Moving Averages    . So, a  Buy trade can be executed with the following target and stop-loss:

TRADE SIGNAL-Brent OilBuy: 87.20, TARGET:-93.20, STOP LOSS:- 84.20.

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