Brent climbed higher on Wednesday after rebounding from Tuesday’s spike to $97.07, underscoring renewed uncertainty in the energy market following a brief relief rally.
Escalating clashes in Yemen, Ukraine’s strikes on Russian oil refineries, and Iran’s threat to shut down all ‘illegal’ passages in the Strait of Hormuz have heightened volatility ahead of the EU and IEA’s planned release of diesel strategic reserves—an effort to alleviate pressure as diesel prices hit record highs across the United States and the Eurozone.
The Brent contract has remained above the $100 mark for five straight days, with Tuesday’s brief dip failing to close below that level, indicating bullish sentiment.
Consequently, technical indicators have improved: the 14‑day momentum is rising toward the centerline, the RSI has moved above 50, and most moving averages are aligned in a bullish configuration.
Technical signals are largely positive, but a sustained break above the 20‑day moving average at $102.43 is needed to keep the bias upward, and clearing $103.95—the October 1 high—would fully unlock bullish momentum.
In the near term, price action is expected to stay biased upward as long as Brent holds above $100.50 (the 10‑day moving average), which protects the key support level at $100.
Nevertheless, fundamental factors will remain the primary driver and will be closely monitored for any new directional cues.
Res: 103.37; 103.95; 104.17; 105.00
Sup: 101.89; 100.50; 100.00; 98.40
