WTI Oil returns to approximately $78.30 after reaching month peaks as the Red Sea’s tensions rise. More upside nears
The WTI oil price rose for the 4thstraight period on Monday, Hovering at $78.30 per barrel. The. WTI pricing hit a monthly peak of $79.19 in the late Asian time. Though since then reduced part of the daily advances. Nevertheless, the rise in oil rates was fueled by fears over probable supply interruptions after an attack by missiles on a petroleum ship in the waters of the Red Sea.
Trend – Bullish
Key Highlights
The fear of a supply-chain interruption over the Red Sea pushed WTI prices higher.
The crude prices for oil rose after a drone hit a US military installation inside Jordan on Sunday afternoon.
The U.S. military might launch attacks inside Iran.
The OPEC+ will conduct a virtual meeting on February 1st to discuss potential production measures.
Red Sea Situation acting as a catalyst for rising Crude prices
Fundamentals
Furthermore, on Sunday, an aerial assault hit an American post in Jordan close the Syrian frontier. Killing 3 US soldiers and injuring a further 24 more. According to accounts, each the government of Joe Biden & the nation’s armed forces. Are now busily drafting precise measures to respond to this strike. Amongst the alternative steps under consideration. However, is the genuine possibility of launching attacks inside Iran. Showing a considerable intensification should these kinds of acts are performed. Which might work to serve as a lift for crude oil rates.
The OPEC nations with its partners are holding a virtual meeting on February 1s. That will address choices about future production strategies. At present, OPEC+ is committing to unilateral reductions in production of around 2.2 Mil bpd for the initial period. The Saudi Arabia spearheading with a 1 mil bpd unilateral drop. Nevertheless, Gazprom which a significant Russia’s oil generator, believes that more oil production restrictions by OPEC+ countries are unnecessary. At this point, the outlook for Moscow processed petroleum exports is expected to deteriorate owing to continuous maintenance at multiple refineries amid attacks with drones.
WTI Daily Technical Indicators & Trend Signals
| Name | Value | Action |
| RSI(14) | 62.106 | Buy |
| STOCH(9,6) | 72.460 | Buy |
| STOCHRSI(14) | 73.641 | Buy |
| MACD(12,26) | 1.280 | Buy |
| ADX(14) | 45.175 | Buy |
| Williams %R | -16.743 | Overbought |
| Name | Value | Action |
| CCI(14) | 144.9151 | Buy |
| ATR(14) | 1.9936 | Less Volatility |
| Highs/Lows(14) | 2.2614 | Buy |
| Ultimate Oscillator | 65.352 | Buy |
| ROC | 8.039 | Buy |
| Bull/Bear Power(13) | 5.4160 | Buy |
Support & Resistance Levels
S3 = 67.924, S2 = 67.924, S1 = 69.388, R1 = 79.222, R2 = 79.607, and R3 = 94
Daily – Pivots
| Name | S3 | S2 | S1 | Pivot Points | R1 | R2 | R3 |
|---|---|---|---|---|---|---|---|
| Classic | 78.13 | 78.44 | 78.66 | 78.97 | 79.19 | 79.50 | 79.72 |
| Fibonacci | 78.44 | 78.64 | 78.77 | 78.97 | 79.17 | 79.30 | 79.50 |
| Camarilla | 78.73 | 78.78 | 78.83 | 78.97 | 78.93 | 78.98 | 79.03 |
| Woodie’s | 78.09 | 78.42 | 78.62 | 78.95 | 79.15 | 79.48 | 79.68 |
| DeMark’s | – | – | 78.82 | 79.05 | 79.34 | – | – |
