Crude Little Changed As Houthis Continue Ship Attacks

Oil prices were moderately lower on Monday with the US closed for a holiday. Geopolitical tensions continued to offset fundamentals that include an expected market surplus throughout this year. The USD index was flat.

• WTI is down 0.3% to $78.21/bbl after reaching a high of $78.56 earlier. Key short-term resistance is at $79.35 and clearance of this would be bullish. Initial support is at $75.07, 50-day EMA.
• Brent fell 0.1% to $83.36, close to the intraday high of $83.60. The current recovery appears corrective but a continuation higher would open up key resistance at $84.17, January 29 high. Key short-term support is at $76.62.
• Geopolitical tensions remain high in the Middle East, despite the pause in attacks on US troops. Another vessel was struck by Houthi rebels off the coast of Yemen with the crew abandoning the ship. It is UK registered but carrying the Belize flag with fertilizer on board and heading to Bulgaria. Also, Israel has said it will go into Rafah in southern Gaza if all hostages aren’t released by Ramadan in mid-March.
• Reports are signalling that travel in China over the New Year holiday was 14% above 2019.