WTI oscillates in range around $85.00 mark despite worsening Middle East crisis

FXStreet
Updated Apr 15, 2024 02:47
Mitrade

■WTI kicks off the new week on a subdued note and reacts little to Iran’s attack on Israel.


Worries about cooling fuel demand turn out to be a key factor capping the black liquid.


The risk of a further escalation of tensions in the Middle East to help limit the downside.


West Texas Intermediate (WTI) US crude Oil prices fail to lure buyers despite Iran's attack on Israel over the weekend and seesaws between tepid gains/minor losses during the Asian session on Monday. The commodity currently trades just below the $85.00/barrel mark, nearly unchanged for the day as traders now await Israel's response to the Iranian strike before placing fresh directional bets. 


Iran launched explosive drones and missiles at Israel late on Saturday in retaliation for a suspected Israeli attack on its consulate in Syria earlier this month. This marks the first attack on Israel from another country in more than three decades and raises the risk of a broader region conflict, which could affect Oil supply from the Middle East. Meanwhile, Israeli officials are in favor of retaliation, though the US has said that it will not take part in any offensive action against Iran. This, in turn, is seen as a key reason behind the muted market reaction and acts as a headwind for Crude Oil prices. 


The black liquid is further undermined by the fact that the International Energy Agency lowered the 2024 global oil demand growth forecast by 130,000 bpd to 1.2 million barrels per day (bpd) on Friday. This comes on top of the official US data published by the Energy Information Administration last week, which showed an unexpected build in gasoline inventories and pointed to signs of cooling in fuel demand. Furthermore, bets that the Federal Reserve (Fed) may delay cutting interest rates in the wake of still-sticky inflation could hamper economic activity and dent fuel consumption.


Nevertheless, the aforementioned mixed fundamental backdrop keeps traders on the sidelines and leads to subdued/range-bound price action on the first day of a new week. WTI Crude Oil prices, meanwhile, remain well within the striking distance of a multi-month peak, around the $87.10-$87.15 area touched on April 5, which should act as a key pivotal point. A sustained strength beyond will be seen as a fresh trigger for bullish traders and set the stage for an extension of the recent well-established uptrend witnessed over the past month or so.


WTI US OIL


Overview
Today last price 84.96
Today Daily Change 0.00
Today Daily Change % 0.00
Today daily open 84.96
 
Trends
Daily SMA20 83.4
Daily SMA50 79.71
Daily SMA100 76.56
Daily SMA200 79.38
 
Levels
Previous Daily High 87.03
Previous Daily Low 84.8
Previous Weekly High 87.03
Previous Weekly Low 84.01
Previous Monthly High 83.05
Previous Monthly Low 76.5
Daily Fibonacci 38.2% 85.66
Daily Fibonacci 61.8% 86.18
Daily Pivot Point S1 84.17
Daily Pivot Point S2 83.37
Daily Pivot Point S3 81.94
Daily Pivot Point R1 86.39
Daily Pivot Point R2 87.83
Daily Pivot Point R3 88.62

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

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