Novak: Oil Supply Gap May Emerge If Middle East Conflict Continues

GOOGL shares experienced a sharp decline of 6.13% in the last close, with the RSI dropping to 23.2, entering oversold territory. The MACD remains below the signal line and in negative territory, confirming weak momentum. The stock is trading below both its 20-day and 50-day moving averages, indicating a bearish short-term outlook. Geopolitical risks in the Middle East threatening oil supply could reduce overall market risk appetite, adding further pressure on technology stocks. However, due to oversold conditions, a short-term technical rebound may be possible.

Technical indicators present a weak outlook, with the RSI approaching oversold territory at 32.09 and the price trading below both the 20-day and 50-day moving averages. The MACD is below the signal line and in negative territory, confirming short-term downward momentum. However, Novak's warning of a supply gap could increase geopolitical risk premium and support prices. Therefore, a balance is forming between technical weakness and potential news-driven upside. Given the short-term directional uncertainty, a neutral stance is recommended.

WTI crude oil has fallen 3.35% over the past 24 hours to $92.80. The RSI at 34.37 is approaching oversold territory, while the MACD remains below the signal line and in negative territory. Trading below the short-term SMA20 (95.09) and SMA50 (94.55) averages presents a technically weak outlook. However, Russian Deputy Prime Minister Novak's statement that Middle East conflicts could create supply gaps may increase the geopolitical risk premium and support prices. With a balance between weak technical indicators and potential upside risk from the news, short-term direction remains uncertain.

The headline indicates that the conflict in the Middle East could threaten oil supply. This situation may positively impact oil prices and, consequently, shares of energy companies such as Exxon Mobil. Technical indicators also support this uptrend: the RSI is at 58.9, in neutral territory, the MACD is above the signal line, and the price is above both the 20-day and 50-day moving averages. A 4.66% increase over the past 24 hours suggests strong short-term momentum. However, given the uncertainty surrounding the scale of the conflict and whether a supply gap will materialize, the bullish outlook can be expressed with moderate confidence.