12.03.202608:50 Forex Analysis & Reviews: All Attempts by the U.S. to Halt Rising Oil Prices So Far Have Not Been Successful

Yesterday, oil prices dipped slightly, but today they are back to rising actively, and here's why.

On Wednesday evening, U.S. Energy Secretary Chris Wright issued a statement regarding the International Energy Agency (IEA) and the U.S. Strategic Petroleum Reserve (SPR): "Today, 32 member countries of the International Energy Agency unanimously agreed to President Trump's request to lower energy prices through a coordinated release of 400 million barrels of oil and petroleum products from their reserves. As part of these efforts, President Trump has authorized the Department of Energy to release an additional 172 million barrels from the Strategic Petroleum Reserve, starting next week. The delivery will take approximately 120 days, based on the scheduled unloading rates."

The politician also noted that President Trump promised to protect America's energy security by responsibly managing the Strategic Petroleum Reserve, and this move demonstrates his commitment to that promise.

Nonetheless, oil prices today have resumed their upward trend following news of attacks on oil tankers in Iraqi waters, which highlighted the threat to energy infrastructure in the Middle East and heightened concerns about conflict escalation. This incident, which occurred in a strategically important region, underscores the vulnerability of global energy supplies amid rising geopolitical tensions. Such events traditionally push crude oil prices upward, as the market quickly prices in a risk premium reflecting potential supply disruptions and possible reductions in availability.

The growing fears of an escalation of the conflict in the Middle East—a key region for oil production and transportation—will continue to heighten uncertainty and push prices higher.

As for the current technical picture of oil, buyers need to overcome the nearest resistance at $100.40. This will allow them to target $106.83, above which it will be quite challenging to break through. The furthest target will be around $113.36. In the event of a decline in oil, bears will try to take control over $92.54. If this is achieved, breaking the range will deliver a serious blow to the bulls' positions, potentially pushing oil down to a low of $86.67 with the prospect of reaching $81.38.