Crude Rallying on Tuesday
Oil prices rare turning firmly higher today as uncertainty over Trump’s comments around Gaza stoke fears of fresh violence. Following news that Hamas has suspended the return of Israeli hostages, Trump has warned the militant group that it must continue returning hostages by Saturday or the ceasefire agreement would be cancelled and Israel would be allowed to resume military operations.
Trump Gaza Comments
These comments come shortly after Trump recently shared plans to take control of Gaza and turn it into a ‘Middle East Riviera’, relocating Palestinians to neighbouring countries. With heightened uncertainty over the prospect of a return to violence, oil prices are spiking higher this week and look likely to continue to push up unless Hamas resumes returning hostages and the ceasefire is maintained.
Tariffs & USD
Away from the Middle East, crude traders are also watching the latest trade developments. Fresh tariffs from Trump this week have fuelled an uptick in trade war risks which are typically negative for crude. However, with the US Dollar remaining muted for now, it seems that the bigger focus is staying on the situation in the Middle East. If Trump pushes ahead with further tariffs near-term, however, this could start to weigh on the oil demand outlook, sending prices lower.
Technical Views
Crude
The rally in oil this week has seen the market moving back above the 72.61 level. While above here, and with momentum studies turning higher, focus is on a fresh test of the bear channel highs and the 77.64 level resistance. This will be a key region for bulls to break. Downside, 67.45 remains key support to note.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.