Brent Oil Breaks Through $95 on Rising Concerns Over Global Supply
Brent crude advanced nearly 4% during Wednesday’s Asian and European trading sessions, reaching its highest level since June 11 as concerns over global supply disruptions continued to escalate. Market sentiment was driven by reports of a potential naval blockade in the Red Sea and renewed tensions surrounding control of the strategically important Strait of Hormuz, which remains closed.
The latest surge marks a second consecutive day of strong gains. Following Tuesday’s close above the key $90 psychological level, Brent pushed through the 50% Fibonacci retracement of the $115.26–$70.13 decline at $92.69 and broke above the 100-day moving average at $94.33, reinforcing a bullish technical outlook.
Momentum indicators on the daily chart have shifted into a fully bullish configuration, complementing geopolitical developments that remain the primary catalyst for the rally. As long as supply concerns persist, attention is likely to remain on the upside, with the next targets seen at $96.85, near the top of the descending daily Ichimoku cloud, followed by the 61.8% Fibonacci retracement level at $98.02.
While overbought conditions could trigger bouts of profit-taking, any corrective pullback is expected to remain limited. Initial support lies at the recently broken $92.69 Fibonacci level, while stronger demand should emerge above the $90 mark. Sustained closes above $90 would help confirm the ongoing bullish breakout and keep the positive near-term outlook intact.
Res: 94.32; 95.49; 96.85; 98.02
Sup: 92.69; 90.00; 88.98; 87.37
