Drone Attack on Tankers Belonging to Russia's Shadow Fleet in the Black Sea

A drone attack on Russia's shadow fleet in the Black Sea has heightened supply security concerns, potentially pushing Brent crude oil prices higher in the short term. Technically, while the RSI at 48 remains in neutral territory, the MACD line approaching a bullish crossover above the signal line and the price holding above the 20-day SMA support the upside potential. However, resistance just above the 50-day SMA (94.82) and the possibility that geopolitical risks may prove temporary could limit the rally. Therefore, I expect an upward move with moderate confidence.

A drone attack on Russia's shadow fleet in the Black Sea has heightened supply disruption fears, potentially pushing oil prices higher in the short term. Technically, WTI closed above its 20-day moving average (90.56) but remains below the 50-day average (91.47). The RSI stands at 48.86, indicating neutral territory, while the MACD has crossed above its signal line, suggesting weak bullish momentum. Although a short-term spike is possible due to the news, sustaining an upward move requires breaking the 91.50 resistance level.

Although the news poses a geopolitical risk to oil supply, Exxon Mobil (XOM) stock already exhibits a technically weak outlook. The RSI is approaching oversold territory at 37, but the MACD remains below the signal line and in negative territory. The price is trading below both its 20-day and 50-day moving averages, having lost nearly 4% in the last 24 hours. In the short term, this negative technical structure and uncertainty could sustain downward pressure.

Although the news has heightened geopolitical risks and triggered concerns over oil supply, CVX stock is displaying a weak technical outlook. The stock is trading below its 20-day and 50-day moving averages, and the RSI is below 40, indicating that short-term selling pressure may persist. The MACD line is below the signal line and in negative territory, confirming weak momentum. The 3.6% decline over the past 24 hours suggests that sellers have taken control following the current technical breakdown. Therefore, a continued downward movement in the short term is more likely.