Brent oil rose over 4% on Tuesday and hit its highest in almost one month, as growing uncertainty over disappointing signs from Middle East peace talks, with Strait of Hormuz remaining mainly closed and raising fears about stronger negative impact globally, that provides more support to oil prices.
Another shocking news that United Arab Emirates have terminated their membership in OPEC and OPEC+ cartels, partially deflated bulls that could result in consolidation / limited pullback in coming sessions.
Daily studies remain bullish but overbought that may provide some headwinds and keep near term action on hold.
Bulls broke above $110.00 (psychological) and dented $111.37 (Fibo 76.4% of $119.19/$86.08 bear-leg) that brings key barriers at 120 zone (recent peaks) in focus, with limited correction seen as positioning for fresh push higher if geopolitical situation remains unchanged or worsens.
Holding above $110 would provide bulls additional positive impulse, although limited dips below $110 (ideally to be contained above $107.00/$106.50) won’t be harmful for larger bullish picture, but would mark a healthy correction.
Res: 112.66; 114.66; 116.86; 119.18
Sup: 110.00; 107.92; 107.00; 106.54
