USOil Slides as Middle East Fears Ease

  • USOil
    (${instrument.percentChange}%)

USOil Analysis

Iran carried out missile and drone attack on Israel earlier in the month, in what posed another threat to the already tense situation in the Middle East. Israel has reportedly conducted counterattacks after officials vowed to respond [1], but both sides appear to downplay the matter.

Markets fears of a broader escalation subside as a result and oil prices fall. The conflicts in the region that is a crucial energy hub, have failed to disrupt traffic, at least not significantly. On the demand side, growth is expected to slow down this year according to the International Energy Agency (IEA) [2] in what would pose a headwind for prices.

USOil slides below its EMA200 that halts the recent bullish bias. This exposes the commodity to the daily Ichimoku Cloud and the ascending trend line from last year's lows. The region can provide support and weakness below it has a higher degree of difficulty. On the other hand, Middle East tension are unlikely to go away and any escalation could send prices higher. As such new 2024 highs (87.66) cannot be ruled out, but prolonged gains past that would likely need actual supply disruptions.

Nikos Tzabouras

Senior Financial Editorial Writer

Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.

With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.

References

1

Retrieved 21 Apr 2024 https://www.cbsnews.com/news/israel-iran-missile-strikes/

2

Retrieved 24 Jun 2024 https://www.iea.org/reports/oil-market-report-march-2024

${getInstrumentData.name} / ${getInstrumentData.ticker} /

Exchange: ${getInstrumentData.exchange}

${getInstrumentData.bid} ${getInstrumentData.divCcy} ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%) ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%)

${getInstrumentData.oneYearLow} 52/wk Range ${getInstrumentData.oneYearHigh}
Disclosure

Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.

Past Performance: Past Performance is not an indicator of future results.

Spreads Widget: When static spreads are displayed, the figures reflect a time-stamped snapshot as of when the market closes. Spreads are variable and are subject to delay. Single Share prices are subject to a 15 minute delay. The spread figures are for informational purposes only. FXCM is not liable for errors, omissions or delays, or for actions relying on this information.