Oil Prices Advance as Geopolitical Risks Heighten Supply Concerns

Brent crude advanced on Wednesday, extending its rebound after Tuesday’s brief surge to $97.07, as renewed geopolitical tensions revived uncertainty across energy markets following a short-lived period of relief.

Fresh clashes in Yemen, Ukrainian strikes on Russian oil refineries, and Iran’s threats to close what it described as “illegal routes” through the Strait of Hormuz fueled market volatility. The developments came ahead of expected decisions by the EU and the International Energy Agency on releasing strategic diesel reserves in an effort to ease supply pressures, as diesel prices soared to record highs across the United States and the Eurozone.

The Brent contract has now held above the $100 mark for a fifth consecutive session, with Tuesday’s pullback failing to produce a daily close below this key level, highlighting the market’s underlying bullish tone.

Technical indicators have strengthened further, with the 14-day momentum indicator trending higher and approaching the neutral line, while the RSI has moved above 50. Moving averages also remain largely aligned in a bullish configuration, reinforcing the positive outlook.

Although the broader technical picture remains constructive, a sustained break above the 20-day moving average at $102.43 is needed to maintain upward momentum. A move beyond $103.95, the October 1 peak, would provide stronger confirmation that bulls have regained full control.

In the near term, the bias is expected to remain positive while prices hold above the 10-day moving average at $100.50, which protects the key psychological support at $100.

Nevertheless, fundamentals remain the primary market driver, and traders will continue to monitor geopolitical developments and supply-related headlines for fresh directional signals.

Res: 103.37; 103.95; 104.17; 105.00
Sup: 101.89; 100.50; 100.00; 98.40