Oil prices remained mostly steady on Thursday as traders were cautious due to the ongoing conflict in the Middle East and news of North Korean troops potentially joining Russia in Ukraine. Brent crude rose by 29 cents (0.4%) to $75.25 a barrel, while U.S. West Texas Intermediate gained 33 cents (0.5%) to $71.10. This week, oil prices have gone up by about 3% after a significant drop of more than 7% last week, which was driven by a temporary easing of Middle East tensions and worries about oversupply.
Tamas Varga from oil broker PVM mentioned that economic concerns, the current supply-demand situation, and risks of war-related disruptions make it hard to predict the future direction of oil prices. On Wednesday, the U.S. reported that North Korea had sent 3,000 troops to Russia for possible involvement in the Ukraine conflict, potentially escalating the situation. Meanwhile, heavy fighting between Israel and Hezbollah and strikes in Syria have raised concerns about oil supply disruptions. The U.S. continues to push for peace in the region ahead of the presidential election on November 5, which could affect U.S. policy in the Middle East.
XBRUSD – H3 Timeframe
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Brent Oil on the 3-hour timeframe has recently broken above the previous low after a rejection from the breaker block region. There is a notable FVG (Fair Value Gap) near the top of the price chart that I anticipate would get filled as price strives to inch even higher. In the meantime, considering the recent break of structure and Fair Value Gap, a retest might occur, bringing price into the perfect demand zone for a bullish continuation.
Analyst’s Expectations:
Direction: Bullish
Target: 78.44
Invalidation: 72.17
XTIUSD – H3 Timeframe
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The 3-hour timeframe of WTI presents a very identical pattern to the one we reviewed earlier on Brent. In this case, the same methodology applies, bringing about a conclusion in favor of the bullish continuation based on the exact same criteria as discussed above.
Analyst’s Expectations:
Direction: Bullish
Target: 75.00
Invalidation: 67.79
CONCLUSION
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