WTI surges past $70.00 as Iran’s missile strike on Israel stirs fears in global oil markets
FUNDAMENTAL OVERVIEW:
- WTI prices surged near $70.65 during Wednesday’s Asian session, driven by growing risks in the Middle East.
- Geopolitical tensions continue to support the rise in oil prices.
- Meanwhile, crude oil inventories fell but did not meet expectations.
Oil prices surged over 3% on Wednesday amid growing concerns that escalating tensions in the Middle East, following Iran’s largest-ever military strike on Israel, could potentially disrupt crude production from the region.
West Texas Intermediate (WTI), the U.S. crude oil benchmark, is trading at approximately $71.50 on Wednesday. The price of WTI has risen following Iran’s missile attacks on Israel, heightening concerns over potential supply disruptions in the region.
U.S. crude oil inventories experienced a smaller-than-anticipated decline last week. The American Petroleum Institute (API) reported that crude oil stockpiles in the United States decreased by 1.5 million barrels for the week ending September 27, a reduction significantly less than the 4.339 million barrels dropped the previous week. Market analysts had projected a decrease of 2.1 million barrels.
Meanwhile, remarks from Federal Reserve Chair Jerome Powell, which were less dovish than expected, could negatively impact WTI prices. Powell indicated that while further rate cuts may be on the horizon due to the economy’s robust performance, he cautioned against hasty decisions.
Traders will be paying close attention to upcoming speeches from Federal Reserve officials Thomas Barkin, Beth Hammack, Alberto Musalem, and Michelle Bowman for additional insights. Any hawkish statements from these officials could lead to a decline in WTI prices. It’s important to note that lower interest rates typically decrease borrowing costs, which can enhance oil demand.
Read More – Technical Analysis By Capital Street FX
CRUDE OIL TECHNICAL ANALYSIS DAILY CHART:
Technical Overview:
Crude Oil is trading within a down channel.
Crude Oil is moving above all Moving Averages (SMA).
The Relative Strength Index (RSI) is in the Buying Zone, while the Stochastic oscillator suggests a Positive trend.
Immediate Resistance level: 72.15
Immediate support level: 70.60
Read More – Market Update By Capital Street FX
HOW TO TRADE CRUDE OIL
After a significant price drop, crude oil found support and bounced back vigorously. It is currently testing a key resistance zone. A breach of this level could open the door for further upward movement.