WTI attracts some buyers to nearly five-month high of $85.00, Middle East tensions rise

WTI edges higher to $84.85, a five-month high on Wednesday.
Geopolitical uncertainties in the Middle East and supply fears boosted oil prices.
The weaker US Dollar from the Fed’s dovish comments lift WTI prices.

Lallalit Srijandorn FXStreet

Western Texas Intermediate (WTI), the US crude oil benchmark, is trading around $84.85, the highest since October 2023 on Wednesday. The uptick in WTI prices is bolstered by the weaker US Dollar (USD), and the supply fears amid the geopolitical uncertainties.

The escalating geopolitical tensions in the Middle East and Russia-Ukrain, such as the Israeli airstrike on an Iranian embassy in Syria on Monday, the ongoing Ukrainian attacks on Russian refineries, and the Houthi attacks on shipping in the Red Sea, raise fear of further tightening supplies, which boost WTI prices.

Oil traders will monitor the Joint OPEC/non-OPEC Ministerial Monitoring Committee (JMMC) meeting on Wednesday. The markets expect the OPEC+ committee to extend voluntary cuts for the second quarter of the year.

Apart from this, crude oil inventories in the US for the week ending March 29 fell by 2.286 million barrels from a 9.337 million barrel jump in the previous week, according to the American Petroleum Institute (API) on Tuesday.

Furthermore, the softer Greenback amid the growing speculation on rate cuts from the Fed also provides some support for WTI prices. Futures traders anticipate the US Fed to start easing in the June meeting and to cut by three-quarters of a percentage point by the end of the year. A weaker USD lifts WTI prices as it makes dollar-denominated oil more cheaper for holders of other currencies, boosting oil demand.

Market players will closely watch Fedspeak on Wednesday. The Fed's Bowman, Goolsbee, Barr, Kugler, and Powell are set to speak later in the day. If they deliver any hawkish comments, the US Dollar could attract some buyers, which might cap the WTI’s upside.

WTI US OIL

Overview
Today last price	84.63
Today Daily Change	-0.36
Today Daily Change %	-0.42
Today daily open	84.99

Trends
Daily SMA20	80.58
Daily SMA50	78.21
Daily SMA100	75.85
Daily SMA200	78.78

Levels
Previous Daily High	85.03
Previous Daily Low	83.41
Previous Weekly High	82.9
Previous Weekly Low	80.35
Previous Monthly High	83.05
Previous Monthly Low	76.5
Daily Fibonacci 38.2%	84.41
Daily Fibonacci 61.8%	84.03
Daily Pivot Point S1	83.93
Daily Pivot Point S2	82.86
Daily Pivot Point S3	82.31
Daily Pivot Point R1	85.54
Daily Pivot Point R2	86.09
Daily Pivot Point R3	87.16

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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