Over the Asian period on Thursday, the cost of American WTI Crude is trading at over $73.00 / barrel. The WTI pricing is rising as a result of growing hostilities related to the Israel-Gaza situation. In addition, interruptions in the Libyan production are adding to the increase in crude oil costs.

WTI Oil Key Highlights

The price of WTI has risen because to increased concerns over maritime safety in the waters of the Red Sea.

Houthis fired 2 anti-ship missiles against a cargo ship bound for Israel.

Following local demonstrations, Libya’s huge Sharara oilfield, having an output of in excess of 300 K bpd, is now completely shut down.

The Houthis just fired 2 anti-ship cruise missiles at a cargo ship travelling to Israel across the southern the Red Sea. This occurrence has heightened worries regarding Red Sea marine safety. Furthermore, a horrible tragedy occurred when approximately 100 individuals were killed in bombings in Iran at a ceremony.  Commemorating deceased general Soleimani. In the year 2020, Soleimani was murdered via an American drone attack.

OPEC+ in Spotlight

Local demonstrations on Wed resulted in the entire halt of drilling at Libya’s key Sharara oilfield. Which is designed for generating up to 300 K barrels a day. Furthermore, the Organization (OPEC+) and its partners have reaffirmed their dedication to continuous dialogue and cooperation within the wider alliance. The committee will convene on February 1st to analyze and discuss the execution of the current oil production limits.

The prices for oil gained substantial backing on Wednesday from the API Weekly Energy Stock report. The report showed that American crude stockpiles fell by 7.418 Mil bbls in the week ended Dec 29. Above the consensus estimate of 2.967 Mil barrels. Furthermore, the EIA, or Energy Information Administration, is slated to disclose the United States Crude Oil Inventories Adjustment today.

Although the majority of the downturn may be ascribed to weak seasonal patterns, notably wintertime. A combination of higher interest rates and slower economic growth might be dragging on gasoline consumption.

The API figures often precedes a comparable number from government US stockpile information, that is coming out on Thursday (today). API Weekly Crude Oil Inventory in the USA

The most recent publication date is January 3, 2024.

Actual: -7.418 million

Prediction: -2.967M

Previously: 1.837M

Notwithstanding the Wednesday rebound., additional gains in crude were hampered by an important rebound in the US dollar.  While investors anticipated additional policy clues from NFP report coming this Friday. Some uncertainty within the arrival of interest rates in the US looked to be sneaking into sectors.  As the notes of the US Fed‘s Dec meet were released.

5- Hourly Technical Indicators