WTI recovers some lost ground near $73.00 amid ongoing Middle East tension

WTI prices attract some buyers near $72.90 amid the ongoing Middle East tension.
The upbeat US economic data might convince the Federal Reserve (Fed) to keep its benchmark rate higher for longer.
The US launched retaliatory airstrikes on Friday against Iran’s Islamic Revolutionary Guard Corps and allied militias in Iraq and Syria.

Lallalit Srijandorn FXStreet

Western Texas Intermediate (WTI), the US crude oil benchmark, is trading around $72.90 on Tuesday. WTI prices edge higher on the modest decline of US Dollar (USD). The downside of WTI prices might be capped by concerns that tensions in the Middle East and Russia's ongoing invasion of Ukraine could curb global supplies.

The stronger-than-expected US PMI and Nonfarm Payrolls (NFP) data might convince the Federal Reserve (Fed) to keep its benchmark rate higher for longer, which would lift the Greenback broadly and exert some selling pressure on WTI prices. The ISM showed on Monday that the US Services PMI rose to 53.4 in January from 50.5 in December.

On the other hand, the geopolitical tensions in the Middle East might cap the downside of oil prices. The United States started retaliatory airstrikes Friday against Iran's Islamic Revolutionary Guard Corps and associated forces in Iraq and Syria. The attacks, which targeted over 85 locations, were in reaction to the deaths of three US servicemen in a drone strike by Iranian insurgents.

The US launched retaliatory airstrikes on Friday against Iran’s Islamic Revolutionary Guard Corps and allied militias in Iraq and Syria. The airstrikes, which hit more than 85 targets, came in response to the deaths of three US troops in a drone strike by Iran-allied militants. This, in turn, might cap the downside of WTI prices in the near term.

Oil traders will monitor the Chinese Consumer Price Index (CPI) and Producer Price Index (PPI) for January on Thursday. The weaker-than-expected data could weigh on WTI prices, as China is the world's second-largest oil consumer.

WTI US OIL

Overview
Today last price	72.96
Today Daily Change	0.07
Today Daily Change %	0.10
Today daily open	72.89

Trends
Daily SMA20	74.13
Daily SMA50	73.31
Daily SMA100	78.16
Daily SMA200	77.22

Levels
Previous Daily High	73.29
Previous Daily Low	71.46
Previous Weekly High	79.19
Previous Weekly Low	71.83
Previous Monthly High	79.19
Previous Monthly Low	69.41
Daily Fibonacci 38.2%	72.59
Daily Fibonacci 61.8%	72.16
Daily Pivot Point S1	71.81
Daily Pivot Point S2	70.72
Daily Pivot Point S3	69.98
Daily Pivot Point R1	73.64
Daily Pivot Point R2	74.38
Daily Pivot Point R3	75.47

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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