Crude Oil tests the high end as geopolitical concerns weigh, keeping energy prices pinned - FXStreet
Crude Oil tests the high end as geopolitical concerns weigh, keeping energy prices pinned
- WTI explores territory north of $78.00 as barrel prices remain bid.
- Global demand concerns outweighed by Middle East tensions.
- Fresh attacks by Houthis and the ongoing Gaza conflict keeping barrel prices high.
West Texas Intermediate (WTI) US Crude Oil tested above $78.00 per barrel on Monday, finding room to the upside with US markets darkened for the American President’s Day federal holiday.
Iran-backed Houthis in Yemen continue to launch attacks on civilian cargo ships in the Red Sea, disrupting key trade routes between Europe and Asia since last November. Houthi rebels claimed responsibility for an attack on an oil tanker bound for India over the weekend, alongside fresh reports of attacks on Monday as shipping lanes through the Suez Canal continue to come under threat.
The ongoing conflict in Gaza between Israel and Palestinian Hamas looks set to continue unabated as an ongoing ceasefire negotiation continues to come up short. Israel’s negotiation team did not return to the talks table in Qatar over the weekend and a ceasefire deal appears unlikely.
Despite Middle East tensions keeping concerns pinned about hypothetical supply constraints in energy markets, ANZ researchers noted that the Organization of the Petroleum Exporting Countries (OPEC) has hit an eight-year high in excess capacity. According to ANZ, OPEC has enough slack in its production cycle to absorb an excess of 6.4 million barrels per day.
WTI technical outlook
WTI US Crude Oil remands bid into near-term highs, testing $78.00 and bolstered above the 200-hour Simple Moving Average (SMA) near $76.60.
WTI Crude Oil prices have seen a choppy, halting recovery after hitting a low of $67.97 in December, and WTI is still down nearly 17% from last September’s peak bids near $94.00 per barrel.
WTI hourly chart
WTI daily chart
WTI US OIL
| Overview | |
| Today last price | 78.15 |
| Today Daily Change | -0.06 |
| Today Daily Change % | -0.08 |
| Today daily open | 78.21 |
| Trends | |
| Daily SMA20 | 75.81 |
| Daily SMA50 | 73.85 |
| Daily SMA100 | 76.91 |
| Daily SMA200 | 77.45 |
Levels Previous Daily High 78.47 Previous Daily Low 76.63 Previous Weekly High 78.47 Previous Weekly Low 75.51 Previous Monthly High 79.19 Previous Monthly Low 69.41 Daily Fibonacci 38.2% 77.76 Daily Fibonacci 61.8% 77.33 Daily Pivot Point S1 77.07 Daily Pivot Point S2 75.93 Daily Pivot Point S3 75.24 Daily Pivot Point R1 78.91 Daily Pivot Point R2 79.6 Daily Pivot Point R3 80.74
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Follow us on Telegram
Stay updated of all the news
Recommended content
Editors’ Picks
AUD/USD stays depressed below 0.6550 after PBOC LPR cut
AUD/USD keeps its downbeat momentum intact below 0.6550 in Asian trading on Tuesday. The pair fails to find inspiration from the expected PBOC 5-year Loan Prime Rate cut amid dovish RBA Minutes.
AUD/USD News
USD/JPY pares gains toward 150.50 after Japan's verbal intervention
USD/JPY has stalled its upside, paring back gains toward 150.00 after the verbal intervention from Japan's Finance Minister that lifted the Yen in the Asian session on Tuesday. The pair also eases amid a risk-off mood even as the US Dollar stays supported.
USD/JPY News
Gold consolidates a three-day recovery rally below $2,020
Gold price is consolidating the three-day advance below $2,020 in the Asian trades on Tuesday. PBOC LPR cut and a cautious mood fail to move the needle around Gold price. Gold traders await Wednesday's Fed Minutes for fresh hints on the interest rate outlook.
Gold News
Ocean Protocol Price Prediction: OCEAN could provide another buying opportunity before next leg up
Ocean Protocol price has soared in February, rallying alongside its peers in the AI crypto sector. The frenzy has been driven by Nvidia earnings euphoria as well as broader market optimism.
Read more
China's travel boom spin has failed to impress international investors
Despite the solid official data indicating robust travel and spending during the Lunar New Year festivities, mainland Chinese equities did not experience significant gains when trading resumed after the holiday.
Read more
Related Knowledge Center: ENERGY BASICS: petroleum
While electric-powered vehicles may be the ride of the future, oil remains at least for now the dominant fuel for transportation around the world. And after a period of time at the end of the 20th century when oil was subject to wide fluctuations in price, new supplies in North America as a result of non-conventional recovery techniques have helped stabilize prices.