Oil prices hit 7-year highs as tight supply bites

Brent crude futures

Brent Oil was trading 1.13% up at  $87.61.

 Benchmark oil prices climbed to their highest level since 2014 on Tuesday as possible supply disruption after attacks in the Mideast Gulf added to an already tight supply outlook.

Brent crude futures rose $1.02, or 1.2%, to $87.50 a barrel by 0924 GMT, while U.S. West Texas Intermediate (WTI) crude futures jumped $1.36, or 1.6%, to $85.18 a barrel. Trade on Monday was subdued as it was a U.S. public holiday.

Both benchmarks touched their highest levels since October 2014 on Tuesday.

Supply concerns have risen this week after Yemen’s Houthi group attacked the United Arab Emirates, escalating hostilities between the Iran-aligned group and a Saudi Arabian-led coalition.

After launching drone and missile strikes which set off explosions in fuel trucks and killed three people, the Houthi movement warned it could target more facilities, while the UAE said it reserved the right to “respond to these terrorist attacks”.

UAE oil firm ADNOC said it had activated business continuity plans to ensure uninterrupted supply of products to its local and international customers after an incident at its Mussafah fuel depot.

Also adding to geopolitical price premiums are rising tensions between OPEC+ member Russia and Ukraine.

RSI Stood at 73.264, 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: 87.40, TARGET:-93.40, STOP LOSS:- 84.40.

About Author

Related posts

Leave a Reply