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Crude oil prices rose by 2.07% to settle at $90.03 per barrel, driven by escalating geopolitical tensions in the Middle East following U.S. airstrikes in Iran and a significant drawdown of 7.4 million barrels in U.S. crude oil inventories. The price briefly touched $91.84 but later retreated, failing to maintain momentum above key technical levels like the 100-hour and 200-hour moving averages ($91.07 and $91.64, respectively). Analysts note that sustained control above these averages is critical for bulls to regain dominance, while a breakdown below $85.45-$86.35 could accelerate a bearish trend toward $78.97.
The mixed technical signals highlight uncertainty in the market. While geopolitical risks typically push oil prices higher, the muted rally suggests traders are cautiously optimistic about potential de-escalation in the Middle East. For traders, the focus remains on whether buyers can reclaim control above the moving averages or if sellers will drive prices lower. The downward-sloping trend line near $91.64 also serves as a critical resistance level to monitor.
For the broader energy sector, this volatility underscores the delicate balance between supply concerns and demand expectations. Gulf investors, particularly in Saudi Arabia, should watch for shifts in OPEC+ policy responses to price fluctuations and how geopolitical developments in the region might influence global energy markets. The next key data points—U.S. production reports and OPEC+ meetings—will be pivotal in shaping the trajectory of oil prices.
