WTI Crude Oil Hits $96 as US-Iran Conflict Escalates
Oil prices continue to surge due to escalating tensions between the US and Iran. The conflict has led to increased fears of oil supply disruptions, pushing Brent crude above $100 on Wednesday. WTI oil also gained strongly, settling above $96.
The Strait of Hormuz shipping has come to a virtual standstill, with recent flows dipping below 2 million bpd compared to 8-9 million bpd prior to the resumption of war on August 30. Concerns over supply have been further exacerbated by attacks on Saudi energy facilities, which have cast doubt on supply through the Red Sea.
WTI crude oil is expected to target $104 as it remains bullish in the short term, according to technical analysis. The daily chart shows a strong breakout above the $92.50 resistance area and a push toward the $97 level. A confirmed break above $97 will likely push the price toward $102.50.
Brent crude oil could target $113 if it holds above key support, which would open the way to the $120 area. The 50-day SMA remains above the 200-day SMA in Brent's daily chart, indicating a strong bullish momentum.