Crude oil remains supported amid Saudi-Houthi conflict and stalled US-Iran negotiations. What's next?

Crude oil extended the gains yesterday into new highs as the lack of positive developments in the Middle East continues to support oil prices. The US-Iran negotiations have stalled over the conditions for reopening the Strait of Hormuz. The US insists that Iran needs to address the nuclear programme first, while Tehran continues to prioritise its conditions, which include the lifting of the US blockade.Iran has intensified the disruptions in the Strait of Hormuz, with reports of vessels being struck and container ships sinking after hitting naval mines. Iranian officials have also said that they are using new tactics to target ships. Meanwhile, the conflict between Saudi Arabia and the Houthis rages on. Houthi attacks have targeted Saudi airports and Aramco facilities, while Saudi forces have retaliated with strikes against Houthi-controlled areas in Yemen. The key catalysts to watch are any progress in US–Iran negotiations and de-escalation in the Saudi-Houthis conflict. Trump has ruled out military escalation ahead of the US midterm elections, but if there is any, we can expect oil prices to surge further.   CRUDE OIL TECHNICAL ANALYSIS – DAILY TIMEFRAMEOn the daily chart, we can see that crude oil(CFD contract) has briefly probed above the 96.77 level but eventually fell back below it. The sellers piled in around that level, with a defined risk above it, to position for a drop back into the lower bound of the channel. The buyers will need a break above the 96.77 level to open the door for a rally into the 110.00 resistance next.CRUDE OIL TECHNICAL ANALYSIS – 4 HOUR TIMEFRAMEOn the 4 hour chart, we have a minor upward trendline defining the bullish momentum. The buyers will likely continue to lean on the trendline, with a defined risk below it, to keep pushing into new highs. The sellers, on the other hand, will look for a break lower to extend the pullback into the lower bound of the channel.CRUDE OIL TECHNICAL ANALYSIS – 1 HOUR TIMEFRAMEOn the 1 hour chart, there’s not much we can add here as the buyers will have a better risk to reward setup around the trendline, while the sellers will need a break to extend the pullback further. The red lines define the average daily range for today. This article was written by Giuseppe Dellamotta at investinglive.com.