Oil prices hit a six-week high on Thursday, as Gulf of Mexico oil rigs were evacuated before a storm, while an incident with a British oil tanker in the Middle East highlighted tensions in the region.
A day after Iran warned Britain to suffer the "consequences" of seizing an Iranian tanker, three Iranian ships attempted to prevent the passage of a British ship through the Strait of Hormuz, according to the British government. They withdrew after the warnings from a British warship.
WTI reached a seven-week high thanks to the merger of positive catalysts that would drive up oil prices. U.S. stocks are falling and the Gulf storm threatens to tighten reserves further. At the same time, escalating military tensions following Iran's dismantling of an American drone and mounting conflict between Iran and the United Kingdom show no signs of cooling. Iran plans to propose oil future contracts, in defiance of American sanctions.
In addition, U.S. Fed Chairman Jerome Powell announced Wednesday the probability of a rate cut on the fear of an economic slowdown. The Fed's stimulus package would reduce borrowing costs, boosting demand for oil.
However, price increases were constrained as OPEC forecast a drop in world demand for crude oil if competitors produced more, pointing to a return to a surplus despite a pact to limit supplies.
The technical analysis of WTI shows a bullish channel since June 18.
The continuation of this price increase would lead us in the short term on resistance to $63.79 with $61.79 and $62.95 as intermediate levels. Higher a new high at $66.57 would be possible.
In the case of a drop, the support to aim for is at $56.
