WTI hovers below $73.00 with positive sentiment as Houthi attacks commercial vessels

WTI price gained ground on a threat of trade and supply disruption.
Houthi militant group attacked a Norwegian commercial vessel in the Red Sea.
US Defense Secretary Lloyd Austin to have virtual talks with other defense ministers to address the Houthi threat.

Akhtar Faruqui FXStreet

West Texas Intermediate (WTI) price grapples to extend its gains on the second successive day, hovering around $72.80 per barrel in the Asian hours on Tuesday. Crude oil prices receive support due to geopolitical disruptions affecting trade and supply costs, following an attack by the Houthi militant group on commercial vessels near Yemen.

On Monday, a Norwegian commercial vessel was targeted in the Red Sea, prompting oil major British Petroleum to halt all transit through the waterway temporarily. The leading shipping firms to contemplate avoiding the Suez Canal.

Defense Secretary of the United States (US), Lloyd Austin declared that Washington is forming a coalition with defense ministers from the region. They are set to participate in virtual talks on Tuesday to address the Houthi threat.

Furthermore, the extended cuts of 50,000 barrels per day (bpd) from Russia have played a role in supporting and bolstering Crude oil prices. In addition, United States officials revealed on Monday their efforts to urge shippers to provide more information about their dealings with Russian oil, aiming to strengthen the enforcement of sanctions.

Canadian refiner Imperial Oil has projected upstream production for 2024 to be between 420,000 and 442,000 barrels per day (bpd), surpassing its 2023 guidance. Meanwhile, the Canadian Association of Energy Contractors anticipates an 8% increase in well-drilling activities in 2024. This development may exert downward pressure on WTI prices.

On Friday, the data revealed a decrease in Baker Hughes Rig Counts to 501 from the previous figure of 503. This suggests a minor decline in the oil service industry's consumption of products and services. Additionally, the API Weekly Crude Oil Stock and EIA Crude Oil Stocks Change for the week ending on December 15 are scheduled for publication on Tuesday and Wednesday, respectively.

WTI US OIL: additional important levels

Overview
Today last price	72.83
Today Daily Change	-0.21
Today Daily Change %	-0.29
Today daily open	73.04

Trends
Daily SMA20	73.5
Daily SMA50	78.36
Daily SMA100	81.53
Daily SMA200	77.58

Levels
Previous Daily High	74.64
Previous Daily Low	71.01
Previous Weekly High	72.73
Previous Weekly Low	67.97
Previous Monthly High	83.34
Previous Monthly Low	72.39
Daily Fibonacci 38.2%	73.25
Daily Fibonacci 61.8%	72.4
Daily Pivot Point S1	71.16
Daily Pivot Point S2	69.28
Daily Pivot Point S3	67.54
Daily Pivot Point R1	74.78
Daily Pivot Point R2	76.52
Daily Pivot Point R3	78.4

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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