Brent oil prices climb following fresh escalation in the Middle East.
Brent crude oil prices rose around 2% in early Monday trading, putting the benchmark on track for its first daily gain after eight consecutive sessions of losses. The rebound was triggered by renewed escalation in the Middle East, including heightened tensions in Lebanon and fresh U.S. strikes on Iran, followed by retaliatory actions, which weighed on market sentiment and revived geopolitical risk concerns.
The recovery was also supported by deeply oversold daily technical indicators after the contract lost more than 16% over the previous two weeks. The sharp decline encouraged profit-taking among bearish positions, contributing to the latest bounce.
Recent losses found support at the key psychological $90 level, while the return into the daily Ichimoku cloud, currently spanning between $93.14 and $99.70, suggests that the recent break below the cloud may have been a false downside signal. This development could pave the way for a deeper corrective recovery.
However, the outlook remains highly dependent on developments in the Middle East. At the same time, concerns about weakening global energy demand, particularly amid softer economic conditions in China and the Eurozone, may continue to limit upside momentum and counter recovery attempts.
Daily technical studies remain predominantly bearish. Initial resistance stands at $95.30, representing the 23.6% Fibonacci retracement of the $112.70–$89.93 decline and reinforced by the lower 20-day Bollinger Band. A break above this level would expose stronger resistance at $98.63, the 38.2% Fibonacci retracement, which is reinforced by the descending 10-day moving average, ahead of the critical $99.70/$100 zone, marked by the top of the Ichimoku cloud and the psychological $100 barrier.
These resistance levels are expected to cap extended rallies, preserving the broader bearish structure and signaling that the current rebound may remain corrective in nature before sellers potentially regain control.
A sustained break above the $99.70/$100 area would weaken the near-term bearish outlook and increase the likelihood of a stronger corrective recovery.
Res: 95.30; 96.09; 98.63; 99.70
Sup: 92.43; 90.00; 88.73; 86.08
