Oil prices rose on Wednesday even though Brent crude is still trading near seven-month lows, under the pressure of concerns about weak demand and recession fears in the United States.

Prices fell earlier in the trading session, after US data showed an unexpected increase in crude oil and gasoline inventories.

However, the risk of escalating conflict in the Middle East could support higher oil prices in the near term, and the region is preparing for a possible new wave of attacks by Iran, Hezbollah and Yemen after the assassination of Haniyeh and Shukr last week, amid fears that the conflict could turn into a wider war in the Middle East.

Technically:  crude oil completed the harmonic Gartley model on the daily frame, rebounding from the strong uptrend levels at the levels of 72.00 dollars per barrel, from which we expect crude oil to rise towards the levels of 77.00 and then 80.00 dollars per barrel.

This scenario fails if the 70.50 levels break down.