Crude Oil Prices Mixed as OPEC+ Meeting Delay Fuels Uncertainty Amid Middle East Tensions
Oil prices traded mixed on Friday as investors navigated geopolitical uncertainty.
Israel and Hezbollah exchanged accusations of ceasefire violations, raising questions about the stability of the truce that had previously eased fears of supply disruptions. Although oil supplies from the Middle East remain unaffected so far, continued tension in the region poses significant risks.
In Eastern Europe, Russia launched another strike on Ukrainian energy facilities, increasing concerns about potential retaliatory actions that could impact Russian oil exports. ANZ analysts warn that heightened geopolitical tensions may lead to supply shocks, amplifying price volatility.
OPEC+ Meeting Delay Leaves Markets in Limbo
OPEC+ postponed its policy meeting to December 5, delaying decisions on output cuts. The alliance is expected to maintain or extend existing production curbs, crucial for balancing supply in 2024. Goldman Sachs analysts project Iranian oil supply could drop by up to 1 million barrels per day if sanctions are tightened in the first half of the year.
These factors, coupled with Iran’s recent plans to install over 6,000 uranium-enriching centrifuges, add layers of complexity to global supply dynamics.
WTI Crude Oil Technical Analysis: Key Levels to Watch
WTI crude is trading near $68.55, recovering slightly after testing critical support at $68.01. The price remains under a downward trendline, with immediate resistance at $69.65 and further barriers at $70.28 and $71.22.
On the downside, a sustained breach below $68.01 could expose WTI to $67.29 and $66.60, indicating further bearish momentum. The RSI currently stands near 47, suggesting neutral momentum, while the 50-day EMA at $69.17 continues to act as a resistance zone.
For Brent crude, key support is positioned at $71.60, with resistance at $72.37. The breakout from this level could open the door to a recovery toward $73.39. However, failure to sustain above $71.60 may signal continued weakness in the short term.
Key Insights:
Geopolitical Risks: Heightened tensions in the Middle East and Ukraine weigh on sentiment.
OPEC+ Decision: Delayed to December 5, with output cuts anticipated to continue.
Technical Levels: WTI resistance at $69.65; key support at $68.01, with RSI near neutral territory.
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