Brent Crude Stagnates as Pipeline Closure Looms Over Global Supplies

The Brent crude oil price has been stagnant this week as investors assess the impact of the East-to-West pipeline closure on global supplies. The pipeline's shutdown will reduce oil supplies by over 7 million barrels in the foreseeable future, according to reports.

Saudi Arabia is seeking to boost supplies by conducting ship-to-ship transfers near the Gulf of Oman, but even after repairs, the terminal may come under attack again. President Donald Trump has warned that the US-Iran war will end after the midterm elections in November, which means the Strait of Hormuz will continue to be closed by Iran and the US, affecting millions of barrels of oil.

Analysts estimate that China's oil imports will rise by over 1.2 million barrels a day in the fourth quarter of the year, leading to a squeeze on global supplies. Top analysts are warning of an oil price surge, with Goldman Sachs predicting that oil may retest its year-to-date high of $120.

The Brent crude oil price has formed a bullish pennant pattern, which is made up of a vertical line and a symmetrical triangle. This pattern suggests that the price will continue to rise as bulls target the key resistance level of $110, with a move above that level pointing to more gains towards $120.