WTI advances to $79 on geopolitical risks and soft US Dollar

WTI capitalizes on multiple tailwinds.
The weak US job market fuels expectations for the Fed to reduce interest rates from September.
Geopolitical risks deepen fears of tightening oil supply.

Sagar Dua FXStreet

West Texas Intermediate (WTI), futures on NYMEX, extends its recovery to $79.00 in Monday’s European session. The Oil price rebounds after a six-day losing spell on multiple tailwinds. The black gold benefitted from a decline in the US Dollar, a deepening Middle East crisis, and an increase in official selling prices of Oil by Saudi Arabia to various regions.

The dollar-denominated Oil rises as an appeal for the Greenback darkens after the crucial United States official labour market data for April remained weak. The US Nonfarm Payrolls (NFP) data released on Friday reported that fewer jobs were created and the Unemployment Rate rose to 3.9%.

Weak job market status prompts expectations for the Federal Reserve (Fed) to unwind its restrictive interest rate stance. The scenario is favourable for the Oil price as it increases its demand.

Meanwhile, geopolitical risks in the Middle East region have deepened fears of tightening oil supply. The ceasefire between Israel and Palestine is less likely, and the former is expected to extend its operation into Rafah, which is the southern part of Gaza.

Apart from that, Saudi Arabia's move to raise the official selling prices (OSPs) for its crude sold to Asia, Northwest Europe and the Mediterranean in June, signalling expectations of strong demand this summer, reported Reuters.

WTI US OIL

Overview
Today last price	78.56
Today Daily Change	0.76
Today Daily Change %	0.98
Today daily open	77.8

Trends
Daily SMA20	82.83
Daily SMA50	81.44
Daily SMA100	77.93
Daily SMA200	79.82

Levels
Previous Daily High	79.36
Previous Daily Low	77.76
Previous Weekly High	83.63
Previous Weekly Low	77.76
Previous Monthly High	87.12
Previous Monthly Low	80.62
Daily Fibonacci 38.2%	78.37
Daily Fibonacci 61.8%	78.75
Daily Pivot Point S1	77.26
Daily Pivot Point S2	76.71
Daily Pivot Point S3	75.66
Daily Pivot Point R1	78.85
Daily Pivot Point R2	79.9
Daily Pivot Point R3	80.44

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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