WTI rises near $75.50 on dovish Fed outlook, Maersk, CMA CGM return to Red Sea

WTI price gains ground as expected rate cuts could help in increasing oil demand.
Crude oil prices could find resistance as Major shipping firms have begun returning to the Red Sea.
US has completed contracts to acquire three million barrels of oil to replenish the SPR.

Akhtar Faruqui FXStreet

West Texas Intermediate (WTI) price trades higher around $75.50 per barrel during the Asian session on Wednesday. The increase in Crude oil prices is partially attributed to optimism surrounding potential US interest rate cuts, which could stimulate economic growth and increase fuel demand.

Despite ongoing attacks and escalating tensions in the Middle East, there's a possibility that oil prices could face constraints. Major shipping firms, including Maersk and CMA CGM, have begun returning to the Red Sea following the deployment of a multinational task force in the region. The decision of Hapag-Lloyd regarding the resumption of shipments is anticipated on Wednesday. The return of these shipping giants to the Red Sea suggests a cautious normalization despite the persisting security concerns in the region.

The United States (US) has completed contracts to acquire three million barrels of oil, aiming to replenish the Strategic Petroleum Reserve (SPR). This move comes after the largest sale in the history of the SPR last year. The US Department of Energy announced this development on Tuesday, signaling a strategic effort to bolster the country's reserves and address energy security concerns.

Market participants will likely closely monitor the US API Weekly Crude Oil Stock data for the week ending on December 22 on Wednesday. Following that, on Thursday, attention will shift to the release of the EIA Crude Oil Stocks Change, providing insights into the inventory levels. Finally, on Friday, the Baker Hughes US Oil Rig Count will be released, offering information on the number of active oil rigs, which can indicate trends in oil exploration and production.

WTI US OIL: technical levels to watch

Overview
Today last price	75.47
Today Daily Change	0.22
Today Daily Change %	0.29
Today daily open	75.25

Trends
Daily SMA20	72.82
Daily SMA50	77.1
Daily SMA100	81.08
Daily SMA200	77.72

Levels
Previous Daily High	76.22
Previous Daily Low	73.21
Previous Weekly High	75.41
Previous Weekly Low	71.01
Previous Monthly High	83.34
Previous Monthly Low	72.39
Daily Fibonacci 38.2%	75.07
Daily Fibonacci 61.8%	74.36
Daily Pivot Point S1	73.56
Daily Pivot Point S2	71.88
Daily Pivot Point S3	70.55
Daily Pivot Point R1	76.58
Daily Pivot Point R2	77.91
Daily Pivot Point R3	79.59

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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