Crude Oil Price Forecast: Bears Reload but Energy Market Outlook Stays Positive

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The attack on Israel has the potential to lead to upward pressure on oil prices in the near term, especially if irrefutable evidence surfaces linking Iran to the acts of terrorism witnessed over the past weekend.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.Wall Street IG Client Sentiment: Our data shows traders are now net-short Wall Street for the first time since Sep 21, 2023 when Wall Street traded near 34,068.90.Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇨🇭CHF: 0.29% 🇬🇧GBP: 0.22...

Although Israel is not a major crude producer, the ongoing conflict's implications for oil could be substantial if major players are drawn into the crisis. For instance, should conclusive evidence emerge implicating Iran in the terrorist incidents in any way, the West could be forced to impose new economic sanctions on the Islamic Republic's energy sector, a situation that could further tighten markets.

On the other hand, if WTI manages to resume its rebound, initial resistance is situated at $85.00. While surmounting this obstacle may pose a challenge for buyers, a successful breakout has the potential to bolster the bullish momentum, opening the path for a move to $87.25, followed by $88.40. On further strength, a retest of the yearly high becomes more likely.

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Oil Price Forecast: Geopolitical Turmoil to Spur Bullish Energy Market SentimentThe attack on Israel could exert upward pressure on oil prices in the near term, especially if conclusive evidence emerges linking Iran in any way to the terrorist violence witnessed this past weekend.
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