Hello Traders 🐺
🧠 Fundamental Insight:
Recent geopolitical developments in the Middle East — particularly tensions involving Iran, Israel, and unrest around the Red Sea shipping routes — have reignited fears of supply shocks in the oil market.
But how much of this is just market sentiment, and how much is a real, structural threat?
It’s important to note that most oil-producing nations in the Middle East are heavily reliant on oil revenue to sustain domestic budgets.
Prolonged disruption in oil supply would backfire economically, forcing them to eventually restore production — or risk budget deficits, currency devaluation, or inflation.
Moreover, while global efforts are pushing toward electrification and renewable energy, a large portion of electricity is still generated using fossil fuels — many of which are petroleum-based.
So even as demand shifts in form (from gasoline to electricity), crude oil remains embedded in the global energy matrix.
🇺🇸 The U.S. & 🇨🇳 China: Macro Drivers at Work
The U.S. remains the world’s largest oil producer thanks to shale output. Any significant rise in Brent can be quickly counterbalanced by a ramp-up in U.S. production.
The Fed’s monetary policy also plays a role. A stronger USD (via rate hikes) generally pressures oil prices downward.
China, as the largest importer of crude, has a decisive influence on demand. Weak industrial output or real estate troubles in China can nullify even a strong supply shock.
Watch for China’s stimulus policies — any sign of renewed growth can boost Brent significantly.
📉 Technical Outlook (Brent Crude - Weekly Chart Hypothesis):
As you can see on the weekly chart , price was trying to pump above the monthly resistance area however It's turned into the fake out and all of us knows that this is a massive sign of weakness for BRENT but I still think that price is currently could goes a little bit higher than the current level and break above the blue trend line in the mid term .
Any news-driven spike (e.g., new conflict headlines) must be validated by volume and follow-through — otherwise, it's a fade opportunity.
🎯 Conclusion:
Don’t blindly buy into every geopolitical headline.
While the Middle East remains a key risk factor for Brent, true price action will depend on the balance between physical disruptions and global demand signals — particularly from the U.S. and China.
In this market, the chart reacts first, but macro confirms the move.
As traders, we must track both — not just price, but purpose.
let me know what you are thinking about the current situation in the comment section down below !
and as always remember :
🐺 Discipline is rarely enjoyable , but almost always profitable 🐺
🐺 KIU_COIN 🐺
🧠 Fundamental Insight:
Recent geopolitical developments in the Middle East — particularly tensions involving Iran, Israel, and unrest around the Red Sea shipping routes — have reignited fears of supply shocks in the oil market.
But how much of this is just market sentiment, and how much is a real, structural threat?
It’s important to note that most oil-producing nations in the Middle East are heavily reliant on oil revenue to sustain domestic budgets.
Prolonged disruption in oil supply would backfire economically, forcing them to eventually restore production — or risk budget deficits, currency devaluation, or inflation.
Moreover, while global efforts are pushing toward electrification and renewable energy, a large portion of electricity is still generated using fossil fuels — many of which are petroleum-based.
So even as demand shifts in form (from gasoline to electricity), crude oil remains embedded in the global energy matrix.
🇺🇸 The U.S. & 🇨🇳 China: Macro Drivers at Work
The U.S. remains the world’s largest oil producer thanks to shale output. Any significant rise in Brent can be quickly counterbalanced by a ramp-up in U.S. production.
The Fed’s monetary policy also plays a role. A stronger USD (via rate hikes) generally pressures oil prices downward.
China, as the largest importer of crude, has a decisive influence on demand. Weak industrial output or real estate troubles in China can nullify even a strong supply shock.
Watch for China’s stimulus policies — any sign of renewed growth can boost Brent significantly.
📉 Technical Outlook (Brent Crude - Weekly Chart Hypothesis):
As you can see on the weekly chart , price was trying to pump above the monthly resistance area however It's turned into the fake out and all of us knows that this is a massive sign of weakness for BRENT but I still think that price is currently could goes a little bit higher than the current level and break above the blue trend line in the mid term .
Any news-driven spike (e.g., new conflict headlines) must be validated by volume and follow-through — otherwise, it's a fade opportunity.
🎯 Conclusion:
Don’t blindly buy into every geopolitical headline.
While the Middle East remains a key risk factor for Brent, true price action will depend on the balance between physical disruptions and global demand signals — particularly from the U.S. and China.
In this market, the chart reacts first, but macro confirms the move.
As traders, we must track both — not just price, but purpose.
let me know what you are thinking about the current situation in the comment section down below !
and as always remember :
🐺 Discipline is rarely enjoyable , but almost always profitable 🐺
🐺 KIU_COIN 🐺
_____________________________________
🐺 Discipline is rarely enjoyable ,
But almost always profitable 🐺
TElEGRAM CHANNEL : t.me/KIU_COIN
_____________________________________
🐺 Discipline is rarely enjoyable ,
But almost always profitable 🐺
TElEGRAM CHANNEL : t.me/KIU_COIN
_____________________________________
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
_____________________________________
🐺 Discipline is rarely enjoyable ,
But almost always profitable 🐺
TElEGRAM CHANNEL : t.me/KIU_COIN
_____________________________________
🐺 Discipline is rarely enjoyable ,
But almost always profitable 🐺
TElEGRAM CHANNEL : t.me/KIU_COIN
_____________________________________
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.