Crude oil is on the high side once again for Thursday, following on Wednesday’s bullish spike on news that Saudi Arabia is seeing constraint in a major shipping lane. What levels should traders watch? Gain insight into the following 26 July WTI Crude Oil Price Fundamental Forecast.
26 July, GKFX – WTI is now trading back over 70.0 per barrel, and leaning into the bullish side heading into the latter half of the week; oil prices are receiving a boost after Saudi Arabia announced that it was halting oil shipments through the Bab al-Mandeb shipping lane in the Red Sea.
Oil jumps on Saudi Arabia shipping lane attack
Yemeni Houthis attacked two oil tankers in the major shipping lane on Wednesday, leading Saudi Arabia to temporarily halt the flow of all crude shipments through the strategic waterway, bolstering fears of supply constraints in oil markets and bumping prices higher.
According to the US Energy Information Administration (EIA), roughly 4.8 million barrels flows through the Red Sea en route to the US, Europe, and the rest of Asia.
26 July WTI Crude Oil Price Fundamental Forecast
Wednesday’s high of 70.50 represents a significant level that bulls will want to climb over quickly, while the current week’s low of 68.35 will hopefully act as a floor against further price declines if supply concerns get wrapped up in short order.
Oil is still a ways off from its multi-year high of 75.35, but bulls have been pushing steadily since bottoming out at 63.50 in June.
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