WTI rises towards $77.00 on escalated Middle East tension, Houthi strikes at a ship


Share:
  • WTI price extends its gains on a threat of supply disruptions due to the Israel-Hamas conflict.
  • Yemen’s Houthi rebels launched missiles at a ship headed for a port in Iran.
  • US top shale-producing regions could increase output by 20,000 bpd to 9.7 million bpd in March.

West Texas Intermediate (WTI) oil price extends its winning streak initiated on February 5, buoyed by heightened geopolitical tension in the Middle East. The price of Crude oil climbs towards $77.00 per barrel during the Asian session on Tuesday. Yemen’s Houthi rebels reportedly launched missiles at a ship headed for a port in Iran, resulting in minor damage to the vessel but no injuries to its crew, according to authorities.

Israel concluded a series of airstrikes in the southern Gaza city of Rafah on Monday. Israeli Prime Minister Benjamin Netanyahu stated his intention on Sunday to escalate military operations in Rafah following the rejection of a ceasefire proposal from Hamas.

However, US President Joe Biden warned Netanyahu against launching a ground offensive in Rafah without a "credible and executable" plan to ensure the safety of the civilians there. Hamas also cautioned Israel, stating that a ground incursion in Rafah could jeopardize future hostage releases. However, Diplomatic discussions in Beirut indicated potential progress towards reducing tensions between Israel and Hamas.

Higher interest rates contribute to uncertainty regarding demand, which in turn limits the rise in Crude oil prices. The Federal Reserve (Fed) is expected to refrain from cutting interest rates at the March meeting due to concerns about inflationary pressures. Additionally, turbulence in the Chinese economy could have an impact on oil prices, given that China is the largest oil importer.

According to the US Energy Information Administration (EIA), oil output from the top shale-producing regions in the United States is projected to increase by nearly 20,000 barrels per day (bpd) to 9.7 million bpd in March, reaching its highest level in four months.

Traders will closely monitor the OPEC Monthly Oil Market Report (MOMR), scheduled for publication on Tuesday. This report addresses significant issues affecting the global oil market and provides insights into developments in the crude oil market.

WTI US OIL: technical levels to watch

Overview
Today last price 76.95
Today Daily Change 0.00
Today Daily Change % 0.00
Today daily open 76.95
 
Trends
Daily SMA20 74.94
Daily SMA50 73.32
Daily SMA100 77.45
Daily SMA200 77.34
 
Levels
Previous Daily High 77.01
Previous Daily Low 75.51
Previous Weekly High 77.18
Previous Weekly Low 71.46
Previous Monthly High 79.19
Previous Monthly Low 69.41
Daily Fibonacci 38.2% 76.44
Daily Fibonacci 61.8% 76.08
Daily Pivot Point S1 75.97
Daily Pivot Point S2 74.99
Daily Pivot Point S3 74.48
Daily Pivot Point R1 77.47
Daily Pivot Point R2 77.99
Daily Pivot Point R3 78.97

 

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Editors’ Picks

EUR/USD hovers around 1.0850 ahead of US data

EUR/USD hovers around 1.0850 ahead of US data

EUR/USD is ranging at around 1.0850 in the European session on Tuesday. The pair stays supported amid a broadly subdued US Dollar and hawkish comments from ECB President Lagarde. The focus now shifts to the high-impact US economic data. 

EUR/USD News

GBP/USD holds steady below 1.2700, BoE-speak, US data eyed

GBP/USD holds steady below 1.2700, BoE-speak, US data eyed

GBP/USD is keeping its range trade intact below 1.2700 early Tuesday. A softer US Dollar and a cautious market mood are contributing to the bull-bear tug-of-war, as traders await the speeches from the BoE and the Fed policymakers alongside the US macro news. 

GBP/USD News

Gold price remains within striking distance of two-week high ahead of US macro data

Gold price remains within striking distance of two-week high ahead of US macro data

Gold price (XAU/USD) catches fresh bids following the previous day's modest downfall and remains well within the striking distance of over a two-week high touched last Thursday. 

Gold News

XRP price recoups losses as Ripple gears up to reveal blockchain roadmap for 2024

XRP price recoups losses as Ripple gears up to reveal blockchain roadmap for 2024

XRP price is influenced by the developments in Ripple and the updates in the SEC v. Ripple lawsuit. The altcoin climbed past the $0.56 level as the XRPLedger prepares to unveil its roadmap for 2024.

Read more

Calm before the data

Calm before the data

It feels like there is a moment of calm and silence in the aftermath of major tech earnings, investors will decide whether this rally deserves to continue higher straight away. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures