Crude Nears 85.50 Resistance as Middle East Risks Mount

Crude oil extended its advance Monday as Middle East tensions kept supply risks in the headlines. The front-month contract inched toward the 85.50-87.50 resistance band that Orbex technical analysts have flagged as a potential turning point.

A rejection at that zone could send prices into a correction toward the 80.00-82.00 support area, according to Rami Abu Draa, head of technical analysis at Orbex. A sustained break above 87.50 would open a move toward 92.50.

Abu Draa, a 10-year industry veteran who blends technical and fundamental analysis, bases the call on the structural resistance formed by prior price swings in the 85.50-87.50 region. The zone has contained crude rallies twice since late June.

Traders are watching Friday's Baker Hughes rig count and upcoming US inventory data for confirmation of demand trends, though the geopolitical risk premium dominates short-term price action.