BRENT OIL price rises above $95 on growing fears of further supply disruption

Brent price rose almost 4% during Asian / European sessions on Wednesday and hit the highest since June 11, fueled by mounting fears of deeper disruption in supply, as threats of closure of the Red Sea in a naval blockade of Saudi Arabia, adds to renewed conflict over control of Hormuz strait, which remains closed.

Fresh price acceleration extends into second consecutive day, with Tuesday’s close above psychological $90 barrier and Wednesday’s break above $92.69 (50% retracement of $115.26/$70.13 downtrend) and violation of 100DMA ($94.33) generating series of bullish signals.

Daily studies turned into a full bullish setup, contributing to geopolitical factor as a key driver, keeping near-term focus at the upside and eyeing next targets at $96.85 (top of falling daily Ichimoku cloud) and $98.02 (Fibo 61.8%).

Meanwhile, partial profit taking on overbought conditions may result in shallow correction which should be ideally contained by broken Fibo level at $92.69, with deeper dips to find ground above $90, as repeated close above this level is needed to validate signal and keep bulls in play.

Res: 94.32; 95.49; 96.85; 98.02
Sup: 92.69; 90.00; 88.98; 87.37