Oil picks up steam with Red Sea tensions arising and Russian Oil loading suspended

• WTI Oil snaps above 75 after Houthi Rebels hit a commercial ship.
• Russian Oil loading in Black Sea halted due to severe storms.
• The DXY US Dollar Index flirts with more downside. 

Oil prices are jumping higher this Wednesday with several geopolitical tensions back on the table. Yemeni Houthi rebels said on Tuesday that they attacked a commercial MSC United ship in the Red Sea after issuing three warning calls. Meanwhile Reuters is reporting that Russia is halting its Black Sea loadings at Novorossiysk due to severe weather conditions. 

The US Dollar (USD) meanwhile is again residing near session lows with the Greenback not finding any support amidst all these geopolitical tensions. With US equities slowly but surely reaching all time highs, the risk-on sentiment in that asset class is the main driver for the devaluation of the US Dollar. The Greenback has no catalyst or main driver for now that could spark a turnaround. 

Crude Oil (WTI) trades at $75.24 per barrel, and Brent Oil trades at $80.50 per barrel at the time of writing. 

Oil News and Market Movers: Oil headlines buzzing

• Reuters reports that Russia has halted Crude loadings in port Novorossiysk, due to severe weather conditions in the Black Sea.
• Linked to the above, Kazakhstan is reporting it is pausing its Oil output with the Caspian Pipeline Consortium (CPC) halting acceptance. 
• Houthi Rebels attacked a commercial MSC United ship in the Red Sea on Tuesday.
• Deputy Prime Minister Alexander Novak said in an interview at Rossiya 24 TV Channel that Brent prices are to average $80-85/bbl in 2024. Russian Oil producers are complying with OPEC+ production restrictions. 

Oil Technical Analysis: Crude to pop 10%

Oil prices are on track to hit $85 within a few weeks at this pace. The markets are redirecting their view as the current economic slowdown might be priced in, in full, Any hiccup in any way or form for the supply side could mean an uptick for Crude prices in the coming weeks. 

On the upside, $74 got broken and tested for support, offering more upside. Once through there, $80 comes into the picture. Although still far off, $84 is next on the topside once Oil sees a few daily closes above the $80 level. 

Below $74, the $67 level could still come into play as the next support level to trade at as it aligns with a triple bottom from June. Should that triple bottom break, a new low for 2023 could be close at $64.35 – the low of May and March – as the last line of defence. Although still quite far off, $57.45 is worth mentioning as the next level to keep an eye on if prices fall sharply. 

US WTI Crude Oil: Daily Chart