Oil Prices Rise as Kurdistan Export Restart Faces Delays.
Oil prices edge higher as delays hit the restart of Kurdistan crude exports
FUNDAMENTAL OVERVIEW:
Oil prices climbed on Tuesday after a planned deal to resume crude exports from Iraq’s Kurdistan region was delayed, easing investor concerns about an immediate supply surge. Both Brent and WTI had fallen roughly 3% over the past four sessions before rebounding.
The restart, aimed at resuming about 230,000 barrels per day of Kurdish exports via Turkey, has been stalled as oil producers seek assurances on debt repayment. Exports have been halted since March 2023.
Broader market sentiment remains cautious, with global supply expected to rise while demand faces headwinds from slowing economic activity and the adoption of electric vehicles. The International Energy Agency recently projected faster supply growth this year, with the potential for a surplus by 2026 as OPEC+ and non-OPEC producers ramp up output.
At the same time, risks linger, with investors watching potential EU sanctions targeting Russian oil and escalating geopolitical tensions in the Middle East.
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CRUDE OIL TECHNICAL ANALYSIS DAILY CHART:
Technical Overview:
Crude Oil is trading within a down channel.
Crude Oil is moving below all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in the Neutral Zone, while the Stochastic oscillator suggests a Positive trend.
Immediate Resistance level: 64.90
Immediate support level: 60.55
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HOW TO TRADE CRUDE OIL
Crude Oil, after witnessing a sharp rally on the higher time frame, faced a steep decline that broke its support zone. Since then, it has been trading on the downside, staying below key resistance. The price is currently pulling back toward the resistance area, where another rejection could spark a deeper decline.