Oil prices fell by 4% in early European trading for the third consecutive session, after a report indicating that Israel is planning a more limited counterattack against Iran than some expected.

According to a Washington Post report, Israeli Prime Minister Netanyahu informed the Biden administration that he was ready to strike military facilities, not oil or nuclear facilities in Iran, which eased immediate concerns about supply disruptions.

Oil prices also fell for other reasons, including a weak demand outlook after China failed to provide details on a stimulus package to revive its economy and OPEC lowered its oil demand forecasts.

Technically: -

crude oil fell strongly, as it was able to break the support levels of 72.30 dollars per barrel, which have now turned into resistance levels, as oil is currently trying to complete the harmonic BAT model, which is centered at demand levels close to the levels of 68.50 to 67.50 dollars per barrel, from which we expect oil to bounce back, albeit only as a correction.

At that time, we are targeting USD 72.00 per barrel at the very least.

This scenario fails if the 65.40 levels break down.