Brent extends breakout gains above $77.50

An earlier update here today noted how the price of Brent crude for February delivery had shied away from resistance in place ahead of $77.50. Well, since that update, the price recovered pretty quickly and once that $77.50 level was taken out is has not looked back. Brent has now extended through $78 and reached a high so far at $78.74. The move has also taken is past its current 21 day moving average, in place right now at $78.44. The next potential point of resistance would be the current 200 day moving average. That is in place today at $79.91. That is still some way off, but the potential disruption to supplies is now clear to see as more and more major shipping outfits abandon the Red sea and the Suez canal. That is the driver behind these recent gains. Brent for February delivery is currently trading at $78.62. In an addendum to this update, I note that the US investment banking giant, GS does not see lasting disruption from all this. Please make of that what you will folks