WTI jumps to a 3-week high above $90

Oil is trading higher today with WTI jumping above $90 per barrel for the first time since October 12, 2022. Media reports pointing to increased tensions in the Middle East are named as a reason behind the move. Associated Press reported yesterday in the evening that Saudi officials informed the United States that, based on their intelligence, Iran may be preparing an attack on the kingdom. AP even reported that attack could occur within the next 48 hours. Since then, there was no follow-up on this story from AP or any other major news outlet. No actions were also taken by Western countries, like evacuation of embassies, suggesting that the threat of Iranian attack may not be as real as Saudis claim. Also, Iran dismissed AP report saying that it does not plan to attack Saudi Arabia.

Nevertheless, oil is trading higher on the news. WTI broke above a short-term resistance zone in the $90 area and reached a 3-week high. However, move started to lose momentum after breakout and now a pullback to the aforementioned zone can be observed.

Source: xStation5