Brent crude rose more than 4% on Tuesday and hit its highest levels in almost a month, with growing uncertainty over disappointing indicators from Middle East peace talks, with the Strait of Hormuz remaining mainly closed and raising concerns about a stronger negative impact globally, providing further support to oil prices.
Another shocking news is that the UAE has ended its membership in OPEC and OPEC+, partially deflating the bulls which could lead to limited consolidation/pullback in the coming sessions.
Daily indicators remain bullish but in overbought territory which could provide some headwinds and keep near-term action on hold.
Bulls broke above $110.00 (psychological) and dropped $111.37 (Fib 76.4% of $119.19/$86.08 down leg) putting key barriers at the 120 area (recent highs) in focus, with a limited correction seen as setting up a new push higher if the geopolitical situation remains unchanged or worsening.
Stability above $110 would provide additional positive impetus for the bulls, although limited declines below $110 (ideally contained above $107.00/$106.50) would not be detrimental to the larger bullish picture, but would represent a healthy correction.
Accuracy: 112.66; 114.66; 116.86; 119.18
SOP: 110.00; 107.92; 107.00; 106.54
