In the volatile arena of the oil market, Western Texas Intermediate (WTI), the benchmark for US crude oil, has been a focal point for traders worldwide.
As of Wednesday, WTI is posted an intraday high of $77.27, showing a slight decline as market participants take profits following the recent uptick. However, this dip is not solely a story of profit-taking; it’s interwoven with broader concerns and geopolitical escalations.
The International Energy Agency (IEA) recently adjusted its oil demand growth projections for 2024 downwards, anticipating a rise of 1.22 million barrels per day (bpd).
This forecast is notably less optimistic than OPEC’s projection of 2.25 million bpd, injecting a dose of caution into the market and exerting downward pressure on WTI prices. This recalibration reflects concerns over global demand, a crucial driver for oil prices in the international market.
GEOPOLITICAL TENSIONS: A COUNTERBALANCING FORCE
Amidst these demand concerns, the escalating geopolitical tension in the Middle East is a pivotal factor that could limit the downside for WTI prices.
Recent military actions, including Israel’s operations in Lebanon and Gaza, alongside Houthi militants’ attack on a commercial ship in the Bab el-Mandeb strait, underscore the fragile stability in a region critical to global oil supply.
These events serve as a stark reminder of the geopolitical risks that can suddenly tighten supply dynamics and push prices upward.
Oil traders are bracing for a series of significant events that could sway the market. The upcoming EIA Crude Oil Stocks Change and API Weekly Crude Oil Stock reports are eagerly awaited, with the potential to offer fresh insights into US crude inventory levels.
Moreover, the spotlight will be on the FOMC Minutes, which could shed light on the Federal Reserve’s interest rate trajectory and policy direction. Given that WTI prices are denominated in USD, any shifts in monetary policy or economic outlook from the Fed could ripple through the oil market, affecting prices.
WTI US OIL OVERVIEW
Category | Indicator | Value |
---|---|---|
OVERVIEW | Today High Price | 77.27 |
Today Daily Change | -0.04 | |
Today Daily Change % | -0.05% | |
Today daily open | 77.03 | |
TRENDS | Daily SMA20 | 76.12 |
Daily SMA50 | 74.14 | |
Daily SMA100 | 76.7 | |
Daily SMA200 | 77.52 | |
LEVELS | Previous Daily High | 78.48 |
Previous Daily Low | 76.77 | |
Previous Weekly High | 78.47 | |
Previous Weekly Low | 75.51 | |
Previous Monthly High | 79.19 | |
Previous Monthly Low | 69.41 | |
Daily Fibonacci 38.2% | 77.42 | |
Daily Fibonacci 61.8% | 77.82 | |
Daily Pivot Point S1 | 76.44 | |
Daily Pivot Point S2 | 75.75 | |
Daily Pivot Point S3 | 74.74 | |
Daily Pivot Point R1 | 78.15 | |
Daily Pivot Point R2 | 79.17 | |
Daily Pivot Point R3 | 79.86 |