Saudi-Houthi Conflict Tests Crude Oil Price Resistance

The ongoing conflict between Saudi Arabia and Houthi forces has continued to impact crude oil prices. Despite recent attacks on Saudi energy facilities, markets are now facing key resistance levels that must be overcome for another bullish rally to occur.

For Brent (UKOIL), the key resistance level is $108, which represents a 7-month trendline and the 78.6% Fibonacci retracement of the March-July decline. For WTI (USOIL), the corresponding resistance level is $104.50, also a 7-month trendline and the 78.6% Fibonacci retracement of the March-July downtrend.

The risks of another regional escalation remain elevated, particularly with new travel warnings and security alerts across the Middle East. At the same time, the latest sentiment peak may signal a potential reversal in markets shifting from pricing an imminent supply shock to a prolonged but potentially manageable conflict.