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CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Market update: Ukrainian drone strikes Russian refinery, Israeli attack in Syria; oil prices hit yearly high

Ukrainian drone targets Russian refinery and Israel attacks Iran's embassy in Syria, escalating regional tensions. Oil prices rise as markets watch OPEC's stable output amidst geopolitical unrest.

Source: Bloomberg

Drone strike hits major Russian oil refinery, and Israel attack Iranian embassy in Syria

Iran vows revenge on Israel following a Damascus strike that killed two Iranian generals and five advisers, escalating fears of a wider Middle East conflict amid ongoing Israel-Hamas tensions.

In addition, Ukraine has gone on the counter-offensive, attacking Russia’s main source of funding for the war – its oil infrastructure. The attack took place 1,300 kms from the front lines; and is not said to have inflicted significant damage. Ukraine has been targeting various oil infrastructure in Russia in an attempt to cut off the main funding vehicle of Russia’s war on Ukraine.

OPEC’s JMMC meeting unlikely to result in any changes

OPEC’s Joint Ministerial Monitoring Committee (JMMC) is scheduled to take place online tomorrow, but according to numerous sources, quoted by Reuters, there aren’t likely to be any changes in output.

OPEC+ members led by Saudi Arabia and Russia met last month and decided to maintain voluntary output cuts of 2.2 million barrel per day (bpd) in an attempt to support the oil market.

Oil prices now test $90 after a Ukrainian drone struck one of Russia’s major oil refineries

Oil prices rise, testing levels of support in oversold territory

Brent crude oi continues the four-day lift after finding support at $85, and recently tagged the $89 mark. In addition, ascending resistance also highlights an interesting intersection between the horizontal level and the trendline (highlighted in orange). However, the oil market may be due a pullback as it comes perilously close to overbought territory and the intraday price action already reveals a slight step back from the $89 mark.

Brent crude oil daily chart

Source: TradingView

WTI oil has also put in a test of the ascending resistance below the long-term level of resistance of $85.90/$86.00. Support emerges all the way back at $79.77 as the RSI appears moments away from oversold territory.

WTI oil daily chart

Source: TradingView

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This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

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