Oil Price Stagnation May Be a Calm Before a Storm
Crude oil prices have stalled this week as investors assess the impact of last week's attack on the East-to-West pipeline. The global benchmark, Brent, is currently trading at $105.68, slightly below its month-high of $109.96.
The situation is complicated by Saudi Arabia's plans to boost supplies through ship-to-ship transfers near the Gulf of Oman, as well as concerns over potential future attacks on the pipeline and terminals.
Additionally, President Donald Trump has warned that the US-Iran war will continue after the midterm elections in November, which could lead to a prolonged closure of the Strait of Hormuz and affect millions of barrels of oil.
Top analysts are warning of an oil price surge, with Goldman Sachs predicting that oil may retest its year-to-date high of $120. Meanwhile, Brent crude has formed a bullish pennant pattern, suggesting that it will continue to rise towards the key resistance level of $110 and potentially even higher.