Crude Oil Price Analysis

Oil at the Fundamental Level

Crude oil prices (West Texas Intermediate) rose by more than 3% on Thursday, reaching $93 per barrel.

Oil prices remain elevated in the medium term as the war in the Middle East continues and the oil supply crisis worsens, which could lead to supply disruptions.

However, forecasts indicate that Iranian oil exports will not cease entirely even if Kharg Island is targeted by a potential ground attack, as Kharg Island is a pivotal hub in Iran’s oil export system, serving as a logistics center for storing crude oil extracted from domestic fields and loading it onto oil tankers.

Oil from a Technical Perspective

Crude oil prices are trading below the downtrend levels on the four-hour chart, where the zone ranging from $93 to $97 is considered a sell zone as long as we remain below the downtrend levels.

We target levels of $90 to $86 per barrel.

This scenario fails if prices break above the $101 level.