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Crude Surges on Iran Strike Threat

COMMODITIES
  • Oil has reversed its losses to surge after Bloomberg reported that an Iranian missile attack on Israel is imminent. This would widen the ongoing conflict in the Middle East.
  • According to Bloomberg, the US and its allies believe that "major missile or drone strikes by Iran or its proxies against military and government targets in Israel are imminent," in retaliation for an Israeli airstrike on an Iranian diplomatic compound in Damascus on April 1.
  • WTI May 24 is currently up 1.1% at $86.2/bbl.
  • A bull theme in WTI futures remains intact and the next objective is $89.08, a Fibonacci projection. If cleared, this would pave the way for a climb towards the $90.00 handle further out. On the downside, initial firm support to watch lies at $83.03, the 20-day EMA.
  • Henry Hub is ending the day trading higher, although it has tapered most of its initial gains. Lower production and higher LNG feedgas flows are being offset by milder weather and higher CPI data which could restrain future US demand growth.
  • US Natgas May 24 is up 0.7% at $1.89/mmbtu.
  • Meanwhile, spot gold is down 0.7% on Wednesday at $2,336/oz, despite a brief spike on the Iranian missile threat headlines.
  • The trend condition in gold remains bullish and the next objective is $2376.5, a Fibonacci projection. Initial firm support is at $2234.8, the 20-day EMA.
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  • Oil has reversed its losses to surge after Bloomberg reported that an Iranian missile attack on Israel is imminent. This would widen the ongoing conflict in the Middle East.
  • According to Bloomberg, the US and its allies believe that "major missile or drone strikes by Iran or its proxies against military and government targets in Israel are imminent," in retaliation for an Israeli airstrike on an Iranian diplomatic compound in Damascus on April 1.
  • WTI May 24 is currently up 1.1% at $86.2/bbl.
  • A bull theme in WTI futures remains intact and the next objective is $89.08, a Fibonacci projection. If cleared, this would pave the way for a climb towards the $90.00 handle further out. On the downside, initial firm support to watch lies at $83.03, the 20-day EMA.
  • Henry Hub is ending the day trading higher, although it has tapered most of its initial gains. Lower production and higher LNG feedgas flows are being offset by milder weather and higher CPI data which could restrain future US demand growth.
  • US Natgas May 24 is up 0.7% at $1.89/mmbtu.
  • Meanwhile, spot gold is down 0.7% on Wednesday at $2,336/oz, despite a brief spike on the Iranian missile threat headlines.
  • The trend condition in gold remains bullish and the next objective is $2376.5, a Fibonacci projection. Initial firm support is at $2234.8, the 20-day EMA.