Oil News: Prices Rebound After The Strong Pullback

Oil Rebounds As Traders Stay Focused On The Middle East

Oil markets rebound as traders focus on the impact of Hurricane Milton and monitor the developments in the Middle East. WTI oil is currently trying to settle above the $74.00 level, while Brent oil is moving towards $78.00.

The recent EIA report was rather bearish as it showed that domestic oil production increased from 13.3 million bpd to 13.4 million bpd. However, traders have mostly focused on gasoline inventories, which declined by 6.3 million barrels.

Tensions in the Middle East remain the key driver for oil markets. Traders are waiting for Israel’s response to Iran’s attack. Israeli Defense Minister has recently said that the country’s response would be “surprising” and “deadly”.

According to recent reports, negotiations between U.S. and Israel continue, and traders are trying to guess whether Israel decided to hit Iran’s oil infrastructure. Such a scenario would be extremely bullish for oil markets, which may limit traders’ desire to short oil contracts amid demand worries.

Technical Analysis

WTI oil found support in the $72.00 – $72.50 range and is trying to settle back above the $74.00 level. In case this attempt is successful, WTI oil will head towards the resistance, which is located near the recent highs at $77.00 – $77.50. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

Brent oil moved back above the $77.00 level and attempts to climb above $78.00. A move above $78.00 will push Brent oil towards the resistance at $81.00 – $81.50. The short-term trend remains bullish despite the strong sell-off as Brent oil has quickly managed to gain upside momentum. On the support side, a move below the 50 MA at $76.09 will push Brent oil towards the support level at $71.00 – $71.50.

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