{"id":14711,"date":"2024-08-26T02:35:02","date_gmt":"2024-08-26T02:35:02","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=14711"},"modified":"2024-08-26T02:35:02","modified_gmt":"2024-08-26T02:35:02","slug":"oil-prices-surge-as-middle-east-tensions-rise-and-u-s-rate-cut-prospects-increase","status":"publish","type":"post","link":"https:\/\/www.global-vtrader.com\/en\/analysis\/oil-prices-surge-as-middle-east-tensions-rise-and-u-s-rate-cut-prospects-increase\/","title":{"rendered":"Oil prices surge as Middle East tensions rise and U.S. rate cut prospects increase"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>Key points:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Brent crude futures rose by 0.5% to $79.39 per barrel, driven by fears of supply disruptions due to escalating Middle East tensions.<\/li>\n\n\n\n<li>The U.S. Federal Reserve&#8217;s endorsement of imminent interest rate cuts boosted sentiment across commodities, including oil.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p class=\"wp-block-paragraph\">Oil prices continued to climb on Monday as escalating tensions in the Middle East sparked fears of disruptions in regional oil supplies. The conflict, centered on Gaza, saw an escalation over the weekend as Hezbollah launched hundreds of rockets and drones into Israel.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Hezbollah launched hundreds of rockets and drones at Israel on Sunday as Israel&#39;s military said it struck Lebanon with around 100 jets, in one of the biggest clashes in more than 10 months of border warfare <a href=\"https:\/\/t.co\/9Mrk5vny2t\">https:\/\/t.co\/9Mrk5vny2t<\/a><\/p>&mdash; Reuters (@Reuters) <a href=\"https:\/\/twitter.com\/Reuters\/status\/1827876963043733986?ref_src=twsrc%5Etfw\">August 26, 2024<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">In response, Israel\u2019s military conducted a pre-emptive strike on Lebanon using around 100 jets, aiming to thwart a larger attack.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This confrontation, one of the most intense in over ten months of border warfare, has raised concerns about a broader regional conflict that could potentially involve Iran and the United States.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Brent and U.S. crude futures rise, eyeing further gains<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Brent crude futures increased by 37 cents, or 0.5%, reaching $79.39 per barrel by 2300 GMT. Simultaneously, U.S. crude futures also saw a 0.5% rise, climbing 36 cents to $75.19 per barrel. The prospect of further escalation in the region suggests oil prices may continue their upward trajectory, with potential targets of $77.50 and $80.00.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/wp-content\/uploads\/2024\/08\/20240826-102642-1024x465.jpg\" alt=\"\nThe CL-OIL-ECN (Crude Oil) chart indicates a strong upward movement, with prices closing at $75.361, representing a 3.32% increase. This bullish sentiment is evident as the price trades above key Moving Averages (5, 10, 30), all of which are sloping upward. The MACD indicator further supports this positive outlook, with the MACD line positioned above the signal line and the histogram reflecting increasing positive momentum.\" class=\"wp-image-14712\" style=\"width:1450px;height:auto\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\"><em>Picture: Oil trading between 75.361 to 75.390 on the <a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\">VT Markets app<\/a>.<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Looking at the charts, we see CL-OIL-ECN (Crude Oil) showing a strong upward movement, with prices closing at $75.361, marking a 3.32% increase. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Apart from the conflict, this rise in oil prices is driven by the growing expectation that the U.S. Federal Reserve may soon cut interest rates. On Friday, <a href=\"https:\/\/x.com\/Reuters\/status\/1826997350805479472\">Federal Reserve Chair Jerome Powell signaled a likely start to rate cuts<\/a>, a move that has boosted sentiment across the commodity complex, particularly in oil. <\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Federal Reserve Chair Jerome Powell said &#39;the time has come&#39; for the central bank to cut interest rates as rising risks to the job market left no room for further weakness and inflation was in reach of the Fed&#39;s 2% target <a href=\"https:\/\/t.co\/dTmwdV46qB\">https:\/\/t.co\/dTmwdV46qB<\/a><\/p>&mdash; Reuters (@Reuters) <a href=\"https:\/\/twitter.com\/Reuters\/status\/1826997350805479472?ref_src=twsrc%5Etfw\">August 23, 2024<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The chart reflects this bullish sentiment, with the price trading above key Moving Averages (5, 10, 30), which are all sloping upward. The MACD indicator also supports the bullish outlook, with the MACD line above the signal line and the histogram showing increasing positive momentum. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This may suggest that the upward trend in oil prices may continue in the near term.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Traders should monitor the resistance level around $76.956, as a break above this level could signal further gains. Conversely, any unexpected hawkish signals from the Federal Reserve or shifts in global economic conditions could introduce volatility, potentially leading to a pullback in prices. Key support levels to watch include the $74.000 area, where the price may find support if it retraces.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Easing monetary policy could continue to support higher oil prices as it may enhance global economic activity and, in turn, fuel demand.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Oil prices face pressure from economic concerns despite recent gains<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, despite the recent gains, oil prices remain under pressure from a broader pessimistic outlook on major economies, which weighed on fuel demand last week. The U.S. Energy Department&#8217;s recent purchase of nearly 2.5 million barrels to replenish the Strategic Petroleum Reserve suggests a cautious approach to managing supply risks in the current geopolitical climate.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Previously: <a href=\"https:\/\/www.vtmarkets.com\/analysis\/oil-prices-remain-weak-amid-demand-concerns-and-easing-supply-fears\/\">Oil prices remain weak amid demand concerns and easing supply fears<\/a><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The number of operating U.S. oil rigs remained steady at 483 last week, according to Baker Hughes&#8217; weekly report, indicating that production levels have not yet responded to the recent price movements. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Start trading now \u2014 click <\/strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/?utm_campaign=account_c&amp;utm_source=dma&amp;utm_medium=website\"><strong>here<\/strong><\/a><strong> to create your live VT Markets account.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Oil prices continued to climb on Monday as escalating tensions in the Middle East sparked fears of disruptions in regional oil supplies. The conflict, centered on Gaza, saw an escalation over the weekend as Hezbollah launched hundreds of rockets and drones into Israel-vtmarkets.com<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[27],"tags":[34],"class_list":["post-14711","post","type-post","status-publish","format-standard","hentry","category-analysis","tag-oil"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/14711","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/comments?post=14711"}],"version-history":[{"count":0,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/14711\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/media?parent=14711"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/categories?post=14711"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/tags?post=14711"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}