Oil prices have gyrated in recent days, fuelled by a fresh escalation in air attacks between the U.S. and Iran, as well as signs that the war may be spreading to other parts of the Middle East. , the global oil benchmark, were last trading at around $89 per barrel, but temporarily crested $100 per barrel last week. The contract remains well above pre-war levels.
Prices also appeared to be supported after an exchange of strikes between the U.S. and Iran in recent days, as well as indications that the war may be expanding to include other countries in the region, including Egypt. An unidentified drone struck gas vessels at Egypt’s Damietta port near the Suez Canal on Wednesday, triggering fires and raising concerns that another critical energy transit route could come under threat.
Meanwhile, Saudi Arabia held talks with representatives from 43 countries on forming a maritime coalition to safeguard shipping in and around the Red Sea, to counter a blockade imposed by Iran-backed Houthi militants last week.
Attacks on refineries across the Middle East and Russia have tightened supplies of gasoline, diesel and jet fuel, keeping refining margins near record highs despite crude remaining below historic peaks.
At the same time, U.S. crude inventories posted a much larger-than-expected decline, reinforcing concerns over tightening supplies.
Data from the U.S. Energy Information Administration () on Wednesday showed commercial fell by 7.2 million barrels to 404.5 million barrels in the week ended July 24.
This week, , after falling nearly 4% from the tested weekly high at $4.180.20, are currently trading down approximately 3.34%, raising scepticism over this week’s closing levels, as the Iran conflict Leaves Bullion Caught Between Risk and Resistance ( https://www.investing.com/analysis/gold-iran-conflict-leaves-bullion-caught-between-risk-and-resistance-200684952).
While on the monthly chart, gold futures, after testing this month’s high at $4,215.50 and this month’s low by nearly 6%, are trading at $4,046.
I find that this week’s closing will provide some more clues on further directional moves while neither side demonstrated readiness for a full-scale war.
I conclude that the last six hourly candles will definitely provide some clues on further directional moves during the next month.
