Mitrade Insights is dedicated to providing investors with rich, timely and most valuable financial information to help investors grasp the market situation and find timely trading opportunities.
    2021
    Best News & Analysis Provider
    FxDailyInfo
    2022
    Best Forex Educational Resources Global
    International Business Magazine

    Crude Oil climbs as geopolitical tensions highlight supply weak points

    Source Fxstreet
    January 22, 2024 22:19
    • WTI tested multi-week highs on Monday as market tensions rise.
    • Ukraine attacked a Russian fuel terminal, increasing market instability.
    • Geopolitical risks continue to keep barrel prices on the high side.

    West Texas Intermediate (WTI) prices hit a one-month high of $75.42 on Monday after it was reported that Ukraine attacked a Russian fuel terminal using explosive drones, according to reporting by the BBC and the Wall Street Journal.

    Global energy markets continue to get unnerved by the increasing potential for supply constraints as a successful Ukraine attack on Russian oil infrastructure highlights how easy it is to topple wide-reaching energy supply chains.

    Between Ukraine targeting Russian energy infrastructure and Iran-backed Houthi rebels continuing to ramp up attacks on civilian cargo ships in the Red Sea, Crude Oil markets remain exposed to growing instability hobbling global trade if tensions continue to mount into a broader spill-over of multiple conflicts.

    Despite ongoing geopolitical tensions and the risk they pose to Crude Oil supply, global production continues to keep prices capped after 2023’s fearful bids on the possibility of constrained energy markets failing to meet barrel demand bore almost no fruit.

    2024 sees global oil production output and exporting continuing to climb despite hopeful production quotas from the Organization of the Petroleum Exporting Countries (OPEC) getting undercut by US Crude Oil production rising into historical highs.

    WTI Technical Outlook

    WTI climbed nearly 4% bottom-to-top on Monday, rising from $72.55 to test into $75.42, settling back into $74.64 as markets head into the Tuesday market session.

    US Crude Oil is caught in a congestion zone between the 50-day and 200-day Simple Moving Averages (SMA) between $78.00 and $73.00, trading into a tight consolidation range after slumping through the 200-day SMA in November.

    WTI Hourly Chart

    WTI Daily Chart

     

    Disclaimer: For information purposes only. Past performance is not indicative of future results.
    placeholder
    WTI hovers around $78.00 amid geopolitical risks, EIA Oil inventories buildupWestern Texas Intermediate (WTI), the US crude oil benchmark, is trading around $78.00 on Friday.
    Source  Fxstreet
    Western Texas Intermediate (WTI), the US crude oil benchmark, is trading around $78.00 on Friday.
    placeholder
    Gold’s rally pauses amid rising US Treasury yields, FOMC Minutes anticipationGold price retreats on Wednesday after registering four days of straight gains as US Treasury bond yields rise in the vicinity of the release of the Minutes from the Federal Reserve’s (Fed) monetary policy meeting in January.
    Source  Fxstreet
    Gold price retreats on Wednesday after registering four days of straight gains as US Treasury bond yields rise in the vicinity of the release of the Minutes from the Federal Reserve’s (Fed) monetary policy meeting in January.
    placeholder
    WTI seems to extend its gains after recovering intraday losses, hovers around $77.50West Texas Intermediate (WTI) oil price is on a path to resume its winning streak, trading around $77.50 per barrel during the Asian trading hours on Wednesday.
    Source  Fxstreet
    West Texas Intermediate (WTI) oil price is on a path to resume its winning streak, trading around $77.50 per barrel during the Asian trading hours on Wednesday.
    goTop
    quote