WTI trades around $78.50 with a positive sentiment after Israel's strike on Rafah city

WTI price could appreciate due to fear over supply risk amid escalated tension in the Middle East.
Israel conducted a strike on Rafah in Gaza during prevailing negotiations for a ceasefire.
Amos Hochstein, President Biden's energy adviser, affirmed that the US has a substantial supply of Oil in the SPR.

Akhtar Faruqui FXStreet

West Texas Intermediate (WTI) crude Oil price hovers around $78.50 per barrel during the Asian trading hours on Tuesday. The Oil prices experienced a slight increase following Israel's strike on Rafah in Gaza. Meanwhile negotiations for a ceasefire continued without resolving. According to Reuters, Israeli forces targeted Rafah on Gaza's southern edge through air and ground attacks, which has provided refuge for over 1 million displaced Palestinians.

On Monday, Hamas accepted a ceasefire proposal from mediators, but Israel rejected the terms, stating they did not meet its demands. The prevailing conflict in the Middle East has contributed to concerns about potential disruptions in crude Oil supplies from the region, thereby supporting Oil prices.

Based on analyst forecasts, a Reuters poll conducted on Monday indicated that crude Oil and product stockpiles in the United States (US) were anticipated to have declined last week. The average expectation was for crude inventories to have decreased by approximately 1.2 million barrels in the week ending May 3.

Amos Hochstein, US President Joe Biden's energy adviser, said on Monday that the US possesses an ample supply of Oil in the Strategic Petroleum Reserve (SPR) to tackle any supply-related worries and is carefully monitoring market conditions to determine its utilization.

Even after President Biden's directive for the largest-ever sale of 180 million barrels from the SPR following Russia's 2022 invasion of Ukraine, the SPR remains close to 40-year lows. The Biden administration has halted the repurchase of Oil for the reserve recently, as crude Oil has been trading above the targeted price of $79.00 per barrel.

WTI US OIL

Overview
Today last price	78.39
Today Daily Change	-0.07
Today Daily Change %	-0.09
Today daily open	78.46

Trends
Daily SMA20	82.46
Daily SMA50	81.48
Daily SMA100	77.99
Daily SMA200	79.81

Levels
Previous Daily High	78.83
Previous Daily Low	77.7
Previous Weekly High	83.63
Previous Weekly Low	77.76
Previous Monthly High	87.12
Previous Monthly Low	80.62
Daily Fibonacci 38.2%	78.4
Daily Fibonacci 61.8%	78.13
Daily Pivot Point S1	77.83
Daily Pivot Point S2	77.2
Daily Pivot Point S3	76.69
Daily Pivot Point R1	78.96
Daily Pivot Point R2	79.46
Daily Pivot Point R3	80.09

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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