Crude Surges on Shipping Risks, Lower USD

Crude is extending gains with WTI shortly rising through the first resistance supported by vessel fears as a further ship faces an attempted rocket attack from Houthi controlled territory, while a lower US Dollar is adding further support.

• Brent FEB 24 up 3% at 76.47$/bbl
• WTI JAN 24 up 3% at 71.58$/bbl
• WTI TECHS: (F4) Trend Needle Points South
  • RES 2: $73.48 - 20-day EMA
  • RES 1: $71.96 - High Dec 12
• A missile fired from rebel-controlled Yemen misses a container ship in Bab el-Mandeb Strait according to AP News reports - citing a US defense official. It is the latest vessel attack in the region threatening ships at a crucial choke point for global trade. “The attack saw the missile splash harmlessly in the water near the Maersk Gibraltar, a Hong Kong-flagged container ship that had been traveling from Salalah, Oman, to Jeddah, Saudi Arabia” AP News cited the official as saying.
• USD fading through to the US cash equity open, with Lagarde saying little to push back against the EUR/USD strength, resulting in new highs at 1.0956 as the greenback. The pair's rally is resolutely bullish, and shifts upside focus to 1.1017, the late November high and the bull trigger for prices.