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    WTI crude rallies on geopolitical tensions, optimistic global growth

    Source Fxstreet
    Jan 30, 2024 19:09
    • West Texas Intermediate (WTI) oil climbs 1.25%, driven by escalating tensions in the Middle East and positive global economic projections from the IMF.
    • IMF's revised forecast boosts optimism for the US and Chinese economies, countering concerns from China’s real estate sector issues.
    • Upcoming OPEC+ meeting and expectations of a US crude inventory drawdown boosted Oil prices.

    West Texas Intermediate (WTI), the US Crude Oil benchmark, rises amid escalating tensions in the Middle East, along with updated forecasts of the International Monetary Fund (IMF), suggesting the global economy would grow more than expected. At the time of writing, WTI exchanges hands at $77.89, up 1.25%.

    Oil price rebounds on Middle East developments, IMF forecasts

    The IMF upward reviewed its forecast for the global economy, particularly the US and China, adding that a “soft landing” was in sight, though overall growth and global trade remain below the historical average.

    On Monday, China’s property crisis concerns weighed on Oil prices as a Hong Kong court ordered the liquidation of property company China Evergrande Group.

    In the meantime, the escalation of the Middle East conflict has boosted Oil prices. US President Joe Biden said the US “…will respond in an appropriate fashion, and it is very possible that what you'll see is a tiered approach here, not just a single action, but essentially multiple actions.”

    Aside from this, the Organization of Petroleum Exporting Countries (OPEC+) will meet on February 1, and isn’t expected to provide a decision on the cartel’s Oil supply for April.

    Meanwhile, a Reuters poll suggested the US crude inventories were foreseen to have drawn down in the last week some 900K barrels.

    WTI Price Analysis: Technical outlook

    WTI’s daily chart depicts Oil is neutrally biased, challenging the 200-day moving average (DMA) at $77.45 at the time of writing. If buyers keep prices above the latter, they could test the 100-day moving average (DMA) at $79.28. Once cleared, WTI would turn bullish, and resumes its uptrend toward $80.00. On the other hand, if sellers keep WTI price below the 200-DMA, that could pave the way to the 50-DMA at $73.58.

     

    Disclaimer: For information purposes only. Past performance is not indicative of future results.
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    WTI extends gains to near $79.50 as OPEC+ decided to extend oil output cuts of 2.2M bpdWest Texas Intermediate (WTI) oil price edges higher to near $79.50 per barrel on Monday, following the decision of voluntary oil output cut, made in coordination with some OPEC+ participating countries, including Russia, aiming at addressing concerns about oversupply and stabilizing oil prices.
    Source  Fxstreet
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    Source  Fxstreet
    West Texas Intermediate (WTI) US Crude Oil traded closely with the $78.00 handle on Thursday as bullish Crude Oil momentum stopped in its tracks as rising US Crude Oil stocks begin to weigh on energy risk appetite.
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