CL New York Oil – Oil prices surge as Israel and Iran launch air strikes against each other

Oil prices jumped and closed up 7% on Friday as Israel and Iran launched air strikes against each other, raising concerns that the fighting could disrupt oil exports in the Middle East. U.S. crude settled at $72.98 a barrel, up $4.94, or 7.62%. Intraday, U.S. crude jumped more than 14% to $77.62, the highest since January 21.

Iran, a member of the Organization of the Petroleum Exporting Countries (OPEC), currently produces about 3.3 million barrels per day and exports more than 2 million barrels per day of oil and fuel. The spare capacity of OPEC and its allies, including Russia, to produce more oil to offset any disruptions is roughly equivalent to Iran's production, according to analysts and OPEC watchers. The latest developments also heightened concerns about disruptions in the Strait of Hormuz, a key shipping channel.

As can be seen from the technical chart, the RSI and stochastic index are still rising, and oil prices have broken through the 200-day moving average and 250-day moving average resistance last week. It is estimated that the upward trend will continue. The upward target is 74.50 and 76 US dollars, and the next level is$77.70 and $80. The nearest support is the 250-day moving average of 70.60 and the 200-day moving average of 68.60, and the subsequent support is expected to be 66.70 to 65.

Forecast range:
Resistance 74.50 – 76.00 – 77.70 – 80.00
Support 70.60 – 68.60 – 66.70 – 65.00

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