A Comprehensive Analysis of Oil Prices: A Modern Technical Perspective
 

Oil Analysis and the Technical and Economic Reasons for the Rise, March 28, 2025
 

First: The Fundamental Factors That Led to the Rise in Oil Prices
 

Disruption of Navigation in the Red Sea:

The disruption of navigation in the Red Sea has disrupted oil supplies, as the Red Sea is a vital oil export route. This disruption has raised concerns about supply shortages in global markets.

Geopolitical Concerns:

Geopolitical tensions have escalated in the Middle East, increasing concerns about the stability of oil production in major producing countries. Such tensions typically prompt investors to raise prices in anticipation of any supply disruption.

Rising Production Costs:

Oil production costs have risen due to increased prices of raw materials and energy used in extraction and refining processes. This increase is prompting producers to raise selling prices to cover costs.

Second: Technical Factors

Looking at the attached chart, we note the following:

Oil prices are rising near the resistance level of 70.543. If the price is able to break through this level, it is expected to continue rising to the next resistance level at 73.113.

If the price fails to break through, a downward rebound may occur towards the support level of 67.708.