By Bhavik Patel
Oil prices climbed from $82 to $91 in the span of two weeks when Hamas attacked Israel, the black gold got more boost this week after a US Warship intercepted three missiles fired from Yemen. This is the latest in a string of indications that the conflict in the Middle East may be escalating, after reports that Israel was strengthening its military presence along the border with Lebanon. Come from Sports betting site VPbet
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Last week was very volatile for crude oil prices with one day prices gaining and other day shedding all the gains. One day we saw prices falling after the US lifted sanctions on Venezuela for six months on condition of holding a fair election in 2024. The administration of President Joe Biden has been seeking to boost global oil flows to ease high prices caused by sanctions on Russia and by OPEC+ output cuts. But Venezuela’s overall exports are unlikely to offset those global cuts absent sustained investment. Next day prices jumped after rocket attack happened on a Gaza hospital killing approximately 500 people. After that Iran has called for a complete and immediate oil embargo on Israel as air strikes on the Gaza Strip continue. This news immediately saw crude prices jumping by 100 points in a matter of minutes. But prices again subsided as OPEC stated that there are no intentions to put an embargo on Israel.
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War premium has returned on crude prices and Oil prices are on course for a second weekly gain as tensions in the Middle East continue to climb. The prospect of higher oil prices will hurt U.S. efforts to refill the SPR and will only add to inflation fears in the EU and elsewhere. As long as the Israel-Hamas tensions run high, crude will remain susceptible to further spikes on signs of an escalation.
In MCX, as long as 7000 is not breached, we would advise to buy on every dip. The momentum oscillator is at 56 which means there is plenty of room on the upside. 7500-7600 seems to be immediate resistance with 7200 emerging as strong support. As we have mentioned one can trade long via options instead of futures looking at high volatility. Any bullish trend will be negated only below the closing of 7000 levels.
(Bhavik Patel is a commodity and currency analyst at Tradebull Securities. Views expressed are the author’s own. Please consult your financial advisor before investing.)
