BRENT price rises above $100 per barrel as supply disruption widens

Brent oil jumped above psychological $100 barrier on Thursday, hitting the levels last traded in late May, as fresh escalation in the Middle East after Yemen’s Houthis hit two Saudi oil tankers in the Bab el-Mandeb straight caused further uncertainty in global oil supply.

Closure of the Red Sea, Saudi Arabia’s alternative route for shipping oil, in addition to already closed Strait of Hormuz, causes panic in the market and this directly affects 25% of global oil supply.

Oil price remains in a steep ascend that extends into third straight day and accelerated on Thursday (oil price was up nearly 6% for the day), with break of important Fibo barrier at $98.02 (61.8% retracement of $115.26/$70.13 descend) and psychological $100 resistance, generated fresh bullish signals, with daily close above $98.02 to keep firm bullish structure intact (daily studies are overbought and $100 marks significant barrier which is unlikely to be clearly broken in first attempt).

Sustained break of $100 is likely to be seen if current situation on the ground persists or deteriorates that would fuel uncertainty and keep the price action in steep ascend, eyeing targets at $104.61 (Fibo 76.4%) and $110 (round-figure) in extension.

Broken Fibo level at $98.02 reverted to solid support, guarding 100DMA ($94.56).

Res: 100.98; 104.61; 106.34; 110.00
Sup: 100.00; 98.02; 95.91; 94.56