Oil prices in Asia showed an increase of about 2% amid growing tensions in the Middle East, a weakening dollar and rising stock indices.
A Saudi-led coalition fighting in Yemen on Sunday said it had intercepted and destroyed an explosive-loaded drone fired by an Iran-backed Houthi group. These messages raised fears of renewed tensions in the Middle East.
In the region, tensions are also growing between Israel and Syria after Tel Aviv's attacks on Damascus.
The favorable situation on the stock markets has a positive impact on oil prices. Investors' appetite for risk is growing amid hopes for a global economic recovery. Oil is also a risky asset.
Over the weekend, ice storms knocked out nearly half of Texas's wind power capacity, pushing electricity demand to record levels. The Texas Electricity Reliability Council (ERCOT) issued a warning demanding consumers and businesses to save energy, citing record energy needs due to extremely cold temperatures in the state.
Interruptions in the supply of electricity can significantly increase the demand for fuel in regions that have been hit by the disaster. Heavy snowfall and freezing rain are predicted to continue over much of the central and eastern parts of the country until Monday.
The price continues to move upward and today approached the level of 61.00. There are no reversal signals on the chart yet, so the medium-term bullish scenario remains a priority.
Main scenario - growth to 61.00 and downward correction
An alternative scenario is a decline from the current levels.
The current fundamental outlook is moderately positive. We consider longs on a pullback to the levels of 60.10 and 59.35.
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