Brent Crude Nears $96; Middle East Conflict Threatens Supply

US crude inventories rose by 2 million barrels last week, the Energy Information Administration said. The inventory data was overshadowed by the shipping risks.

Muhammad Umair, a financial analyst and founder of Gold Predictors, said the technical setup points to further gains. WTI crude broke above $85 resistance on the four-hour chart, opening the door to a rally toward $93 to $96, he said. A hold above $80 support could push WTI to $109 near term. For Brent, the daily chart shows a break above $90, with the next target at $110, Umair said. The 50-day and 200-day moving averages are in a bullish alignment, and the relative strength index is near 70, indicating strong momentum. He said the higher target of $120 is possible if the Strait of Hormuz remains closed and tensions in the Red Sea escalate.

The military tensions must be reduced to eliminate the current supply premium, Umair said.