Oil pierces through its $80 price resistance, nearing year-on-year highs. On its way to $84. News, that the U.K. freight ship Rubymar has sunk off the coast of Yemen. Insurance rates are now over 1% the value of the ship.

As stock markets are gripped with Artificial Intelligence (note, we are 20 years off from 'General' AI) frenzy and mega fund Blackrock's ETF Bitcoin billion $ asset push.  Which has sent the NASDAQ, Dow and S&P 500 into record territory.  All this with an expectation that Central Banks, one by one will begin cutting rates, which is in light of a China slowdown.  Not inflation coming down.  Of course China going into a recession, would be following the deflation script for the global economy, which it isn't, we are more skin to a stagflation scenario for the economy than not.  The oil price says it all.  And yes, this is al about the geopolitical situation that could start to spiral out of control, the longer Israel is allowed free reign in Gaza.  The Houthis will continuing targeting ships in the Red Sea.  And all eyes on Hezbollah in Lebanon. 

Oil jumped from $78 to $80 on news that the U.K. freight ship the Rubymar had sunk in the Red Sea off the coast of Yemen, after the Houthi militia targeted it with a missile.    Current risk premium for insuring a Red Sea vessel are at 0.6%  and 1.0% to the value of the ship.  With freight ships costing as much as $500million, 1% would equate to $5million to insure.  Hence why the oil price soared, and pierced through its $80 per barrel price resistance.  

Next resistance is 81 and then 84

Supports are at 80, 78, 75 and 72.

Oil is currently bid over $80.

Please refer to the chart above.