Oil price rises on fresh geopolitical tensions, but gains were so far limited

WTI oil price rose 3% in European session on Friday and probed above $75 barrier for the first time in two weeks, inflated by fresh fears that conflict in the Middle East could spread after US and British armies attacked positions of Houthis in Yemen.

Escalation raised concerns about oil supply, though market reaction was so far limited and still not pointing to serious problem as rally stalled at pivotal barriers at $75.04/09 (Fibo 61.8% of $79.57/$67.70 / 55DMA), followed by a partial profit-taking.

Daily studies are improving as 14-d momentum is emerging from negative territory, though MA’s remain in mixed setup.

Daily close above broken Fibo 50% level ($73.63) is a minimum requirement to keep fresh bulls in play, but sustained break above $75.00 zone is needed to signal bullish continuation and open for further gains towards targets at $76.12 (Dec 26 high) and $76.77 (Fibo 76.4% of $79.57/$67.70).

Res: 75.22; 75.63; 76.16; 76.77
Sup: 73.63; 72.79; 72.23; 71.00