🔼 Brent at 3-week highs as Red Sea risks continue to increase
Oil prices continue to climb as risks to shipping in the Red Sea continue to increase. US, along with its allies, plan to create a coalition that will be help ensure stability in one of the world's most important waterways amid more frequent attacks of Yemen-based Houthi rebels on commercial vessels. Military action against Houthi rebels in Yemen has not been ruled out. Houthi responded to these developments saying that if US becomes more involved, they will respond by targeting US battleships and interests in the region.
Brent (OIL) trades over 1% higher on the day, even in spite of US inventory data showing builds in crude oil, gasoline and distillate stockpiles. OIL is trading around 11% above an intraday low reached December 13, 2023. Taking a look at D1 chart, we can see that bulls are now attempting to deliver a clear breakout above the $80 resistance zone. Should they succeed, way towards the next resistance zone - $82.50 area, marked with previous price reactions and 50-session moving average (green line) - would be opened.
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Source: xStation5
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