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WTI stands tall near multi-month peak, just above $85.00/barrel mark

  • WTI is seen consolidating its recent strong move to over a five-month peak.
  • Worries about supply disruptions and tight global supply lend some support.
  • Signs of improving demand should further contribute to limiting the downside.

West Texas Intermediate (WTI) US crude Oil prices entered a bullish consolidation phase during the Asian session on Thursday and oscillated in a narrow trading band near the highest level since October 2023 touched the previous day. The commodity is currently placed just above the $85.00 mark, nearly unchanged for the day, and is influenced by a combination of diverging forces.

The official report published by the Energy Information Administration (EIA) on Wednesday showed an unexpected build in the US crude stockpiles, which, in turn, is seen as a key factor acting as a headwind for the black liquid. The downside for crude Oil prices, however, remains cushioned in the wake of concerns about supply disruptions in the Middle East, tight global supply, and signs of improving demand.

Against the backdrop of Ukrainian attacks on Russian refineries, which have cut fuel supply, the risk that the Israel-Hamas war may spread to include Iran and disrupt supplies in the key Middle East region acts as a tailwind for crude Oil prices. Adding to this, a meeting of top OPEC+ ministers on Wednesday kept oil supply policy unchanged and pressed some countries to increase compliance with output cuts.

Meanwhile, Federal Reserve Chairman Jerome Powell sounded cautious about future interest rate cuts due to a still-resilient US economy. Adding to this, the upbeat Chinese manufacturing data released earlier this week fueled optimism about rising Oil demand from the world's largest crude importer. This could further lend support to crude Oil prices and contribute to limiting any meaningful corrective slide.

WTI US OIL

Overview
Today last price85.12
Today Daily Change-0.07
Today Daily Change %-0.08
Today daily open85.19
 
Trends
Daily SMA2080.95
Daily SMA5078.43
Daily SMA10075.92
Daily SMA20078.86
 
Levels
Previous Daily High85.69
Previous Daily Low84.38
Previous Weekly High82.9
Previous Weekly Low80.35
Previous Monthly High83.05
Previous Monthly Low76.5
Daily Fibonacci 38.2%85.19
Daily Fibonacci 61.8%84.88
Daily Pivot Point S184.48
Daily Pivot Point S283.78
Daily Pivot Point S383.18
Daily Pivot Point R185.79
Daily Pivot Point R286.39
Daily Pivot Point R387.1

Author

Haresh Menghani

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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