Brent oil price continues to trend higher and holds near one-month high on Friday, on track for the second consecutive strong weekly gain (up almost 6% for the week).
Growing uncertainty in the Middle East, where the US tries to impose the toughest sanctions on Iranian oil export, while Iran keeps Hormuz strait closed and threatens of strong response, may lead towards further escalation.
In such scenario, further supply disruption from major oil producers in the Gulf region would send fresh shockwaves through the world economies and lift oil price above $100 per barrel.
Brent stays above $94 in Friday afternoon trading and will likely register a weekly close above $90 that would contribute to bullish signals on daily chart (strengthening positive momentum / multiple MA bull-crosses).
Broken Fibo level at $92.85 reverted to initial support, followed by daily cloud top ($91.41) which should contain potential dips and provide better levels to re-enter bullish market for fresh push higher.
Res: 94.69; 95.12; 96.34; 98.96
Sup: 92.85; 91.90; 91.41; 90.00
