WTI Spikes due to an increase in tensions involving Hamas and Israel could bring up concerns about oil supply interruptions.
WTI Crude oil Key Points
Crude WTI price have risen to $88.525/barrel as a result of international conflicts in the M. East region
An increase in tensions among Hamas and Israel could cause concerns about oil supply distractions.
China’s growth figures exceeded expectations.
The previous week, US oil reserves declined approximately 4.383 million barrels. compared with a 12.93 million barrel increase the week before.
So far on Wed, the US crude oil the standard, (WTI), has traded at $88.525. The rise in the cost of oil is being fueled by rising Middle Eastern tensions. Following the death of numerous in a bombing targeting a Gaza a medical facility, that sparked fears of supplies interruptions.
Source: EIA
Today, Gaza officials claimed that an Israeli air strike massacred 600 people in a Palestinian healthcare facility. Whereas Israel claimed that its destruction had been brought about from a Palestinian bombardment. After the attack, Palestinian President Abbas cancelled his planned meeting with US president. Whereas Jordanian King Abdullah cancelled a summit meant to gather Biden together with Egyptian & Palestine leadership. However, escalating instability in the region may raise concerns about future crude supply interruptions, causing WTI pricing to rise.
The Department of Energy – stated on Monday the fact that crude oil stockpiles in the (SPR) remained unchanged for the 2nd week in succession. Resulting in the SPR stock remaining at a close to 40-year minimal of 351.3 M barrels. Alongside overall SPR buys totaling under four million barrels because the presidency of Joe Biden started its purchase back the course.
Crude oil Trader’s Open Interest (Futures)
Taking updated CME Group data for the oil futures exchanges into account. The open interest fell for the 4th period in succession on Tuesday, currently down about 22.700 contracts. The volume, on the contrary increased by roughly 13.,500 units following 3 consecutive daily decreases.
SUPPORT AND RESISTANCE LEVELS
S3 63.729 S2 77.543 S1 80.727 R1 94.238 R2 94.238 R3 94.238 – PIVOT -87.23
