WTI declines to near $76.30 on eased concerns about oil supply disruptions in the Red Sea

WTI price edges lower after Israel’s series of strikes in Gaza's southern city of Rafah.
Israeli Prime Minister Binyamin Netanyahu expressed his intention to escalate the military operation into Rafah.
IMF MD Kristalina Georgieva highlighted that Middle Eastern economies were underperforming compared to growth projections.

Akhtar Faruqui FXStreet

West Texas Intermediate (WTI) oil price halts its five-day winning streak from the previous week, trading slightly lower to around $76.30 per barrel during the Asian session on Monday. The decline in Crude oil prices comes as Israel concluded a series of strikes in Gaza's southern city of Rafah, alleviating concerns about oil supply disruptions in the Red Sea region.

Israeli Prime Minister Binyamin Netanyahu expressed his intention on Sunday to escalate the military operation into Rafah. However, US President Joe Biden cautioned Netanyahu against proceeding with a ground operation in Rafah without a "credible and executable" plan to ensure the safety of the people sheltering there. Hamas also warned Israel that a ground offensive in Rafah could jeopardize future hostage releases.

However, oil prices surged last week on heightened concerns about a potential escalation of geopolitical tensions in the Middle East following Netanyahu's rejection of a proposal to halt the conflict in the Palestinian enclave.

During the Arab Fiscal Forum in Dubai on Sunday, Kristalina Georgieva, the Managing Director of the International Monetary Fund (IMF), highlighted that Middle East economies were underperforming compared to growth projections. Factors contributing to this included oil production cuts and the Israel-Gaza conflict. Despite this, Georgieva noted that the global economic outlook remained resilient. In its regional economic report last month, the IMF revised its GDP growth forecast for the Middle East and North Africa down to 2.9% for the year, falling below previous projections from October.

On Friday, Baker Hughes released its US Oil Rig Count data, indicating no change in the active rig count, which remained steady at 499. Additionally, the OPEC Monthly Oil Market Report (MOMR) is scheduled for publication on Tuesday. This report covers significant issues impacting the global oil market and offers insights into developments in the Crude oil market.

WTI US OIL: technical levels to watch

Overview
Today last price	76.32
Today Daily Change	-0.19
Today Daily Change %	-0.25
Today daily open	76.51

Trends
Daily SMA20	74.72
Daily SMA50	73.25
Daily SMA100	77.57
Daily SMA200	77.32

Levels
Previous Daily High	77.18
Previous Daily Low	75.89
Previous Weekly High	77.18
Previous Weekly Low	71.46
Previous Monthly High	79.19
Previous Monthly Low	69.41
Daily Fibonacci 38.2%	76.69
Daily Fibonacci 61.8%	76.38
Daily Pivot Point S1	75.88
Daily Pivot Point S2	75.24
Daily Pivot Point S3	74.59
Daily Pivot Point R1	77.16
Daily Pivot Point R2	77.81
Daily Pivot Point R3	78.45

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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