Written by: Salma El-Saqqa
Crude oil prices have seen a new rise in global markets, driven by escalating doubts surrounding a proposed ceasefire agreement in the energy sector between Russia and Ukraine, alongside the continued stalemate in diplomatic negotiations regarding the reopening of the Strait of Hormuz and its repercussions on global energy supplies.
Market developments and geopolitical tensions
Oil prices have recorded mixed movements recently following the exclusion of immediate military escalatory steps, although ongoing talks have not yet reached final decisive results. The concerned parties indicated that diplomatic responses to proposals concerning vital waterways are still under review by mediators. In the same context, doubts hover over the parties' commitment to a potential agreement to stop targeting energy infrastructure between Russia and Ukraine, as reports indicate continued mutual attacks despite previous announcements of a possible de-escalation, which keeps concerns about supply shortages present.
Technical analysis of crude oil prices
Daily charts show crude oil moving in an upward trajectory after rebounding from the lower price limits, as traders await key resistance levels. In the event of a temporary pullback, buyers are likely to look for opportunities to support prices, while sellers are monitoring for any bearish breakout to test nearby support levels. On shorter timeframes, prices are reacting to technical trend lines amidst anticipation of intraday resistance and support levels that determine the path of daily trades.
Upcoming economic data
Traders in energy markets are awaiting the release of important economic reports during the week, including inflation indicators and retail sales and unemployment figures in the United States, which will be major drivers of market movement alongside ongoing geopolitical developments in the Middle East and Eastern Europe.
