Brent Crude Pulls Back from Recent Peaks Amid Diplomatic OptimismBrent crude prices saw a significant surge on Monday, reaching a five-week high after opening with a gap upward and breaking through the critical $90 psychological threshold. This momentum followed a substantial 13% rally last week, though the gains were subsequently erased by a sharp $5 pullback.
Geopolitical tensions remain a primary driver for market volatility. While fears of wider regional escalation continue to weigh on sentiment, recent statements from Iran regarding diplomacy based on national interests have offered a glimpse of potential negotiations, leading to a moderation in oil prices.
The fundamental outlook remains bullish due to persistent uncertainty regarding global oil supplies, particularly with the Strait of Hormuz facing disruption risks following the recent breakdown of the fragile ceasefire. This bullish sentiment is further supported by dominant technical indicators on the daily timeframe.
To maintain the current bullish momentum, prices should ideally close above the Fibonacci resistance level at $87.37 (the 38.2% retracement of the $115.26/$70.13 range). A failure to do so could lead to a deeper correction toward the $83.30 support zone.
A decisive breakout above $90 could target the $92.69 (50% retracement) and $93.90 (100DMA) levels.
Res: 90.00; 91.38; 92.69; 93.90
Sup: 87.37; 86.27; 85.97; 83.70
