Crude Oil Price Forecast

Oil prices rise amid fears of escalating tensions between the United States and Iran

Oil prices climbed to their highest level since late September, driven by concerns about a potential US military strike against Iran.

West Texas Intermediate crude rose by more than 2% on Thursday to $64.50 a barrel.

Iran produces about 3.3 million barrels per day and exports approximately 1.5 million barrels per day. This is expected to be the biggest supply concern at present.

Investors are also monitoring the Strait of Hormuz, a vital waterway through which about 20 million barrels of crude oil pass daily, as any disruption there could have serious consequences.

If there is no escalation, negative fundamentals will likely return to the forefront, potentially pushing the market down again.

On the other hand, the latest data from the US Energy Information Administration showed that US crude oil inventories fell by 2.3 million barrels last week.

Oil Technical Analysis

Oil prices continue their upward trend for the third consecutive day and the sixth week, reaching our previous target of $64.00. We are still anticipating further gains towards at least $65.50 per barrel, at which point crude oil will have reached the upper limit of the ascending price channel on the four-hour timeframe.

From there, a corrective pullback is possible to gather momentum for a continuation of the upward movement towards $69 and then $73 per barrel.

This scenario will be invalidated if the price breaks below $62.