Market Analysis: Israel Under Attack, Oil Prices Rise Sharply

<img src="https://images.unsplash.com/photo-1516199423456-1f1e91b06f25?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wxMTc3M3wwfDF8c2VhcmNofDF8fG9pbHxlbnwwfHx8fDE2OTY4NDAwMzR8MA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=2000" alt="Market Analysis: Israel Under Attack, Oil Prices Rise Sharply" /><p>On Friday, trading in WTI oil futures on the NYMEX closed at USD 82.81 per barrel. And on Monday morning, they opened at a price of USD 85.25 and began to quickly rise in price, reaching 87.24. Natural gas prices have also risen sharply.</p><p>The reason is Saturday&apos;s attack on Israel. And, of course, associations arise with the oil crisis of 1973, when Arab oil-producing countries refused to supply raw materials to the United States and other allies that supported Israel. Then the price of a barrel rose from USD 3 to 12 in six months.</p><figure><img src="https://fxopen.com/blog/en/content/images/2023/10/91.png" alt="Market Analysis: Israel Under Attack, Oil Prices Rise Sharply" loading="lazy" width="2000" height="1099" srcset="https://fxopen.com/blog/en/content/images/size/w600/2023/10/91.png 600w, https://fxopen.com/blog/en/content/images/size/w1000/2023/10/91.png 1000w, https://fxopen.com/blog/en/content/images/size/w1600/2023/10/91.png 1600w, https://fxopen.com/blog/en/content/images/size/w2400/2023/10/91.png 2400w" sizes="(min-width: 720px) 720px" /></figure><p>Is such a 4-fold increase possible after 50 years? The rise in oil prices seems to hint at this possibility. Nothing can be ruled out. Although the US created a strategic reserve as a result of the oil crisis, it was greatly depleted due to the fight against inflation.</p><p>Technical analysis of the WTI oil price market shows that:<br>→ the price pushed off the lower border of the blue ascending channel, finding support around USD 84;<br>→ the price may fall to the lower border of the downward red channel to close the gap;<br>→ resistance to growth can be provided by both the median line of the red descending channel and the psychological level of USD 90.</p><p>However, the main price driver should be expected to be news related to Israel and the position of Arab oil producers.</p>