Oil Price Stagnation Masks Bullish Pattern Ahead of Key Breakout
The global oil benchmark, Brent crude, has stagnated in price over the past week as investors assess the impact of the East-to-West pipeline closure on supplies. Despite this, a highly bullish pattern is forming, which may lead to a strong breakout.
Saudi Arabia's decision to conduct ship-to-ship transfers near the Gulf of Oman aims to boost supplies after Iran-backed groups attacked the East-to-West pipeline last week, reducing oil supplies by over 7 million barrels. However, this move comes with risks, as even after repairs, the terminal may come under attack again.
The Strait of Hormuz will likely remain closed until November, affecting millions of barrels of oil, according to President Donald Trump's warning. This situation is further complicated by Iran's consideration of an 'October surprise', ramping up attacks against US targets in a bid to influence the election results.