Crude Oil Gains Support – Saudi Oil Tankers Under Attack

Crude Oil's technical outlook remains slightly bullish as crude oil continues to trade sideways in a broad trading range of 62.50 – 60.30...


As you know, WTI crude oil was bearish over trade war sentiments that the US & China will lower their demand as they both consume around 34% of overall consumption. However, the recent shocking news from Saudi Arabia extended its support.

On Monday, oil prices increase due to a tanker attack near the Persian Gulf. In today’s attack, two crude oil tankers are badly damaged triggering US oil demand over fears of an oil shortage.

In response to this, Saudia Arabia explained that one of the reasons behind this attack is to damage the security of global crude oil supplies and perhaps to hurt Saudi Arabia and UAE relations as they are the third-largest producers in the world.

Technical Analysis
Technical outlook remains slightly bullish as crude oil continues to trade sideways in a broad trading range of 62.50 – 60.30. The descending triangle support level of 62.50 is now working as a resistance, giving a hard time to bulls.

Let’s wait for the market to violate 62.50 level first as closing outside this range is likely to add further buying until 64. In case of no breakout, oil prices can continue to consolidate under 62.50.

Good luck!

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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