WTI is trading over $85.50 due to concerns about the intensification of the Gaza conflict. Crude oil is trading flat in advance of the release of US economic statistics.
With the initial European trading on Tuesday. The (WTI) is hovering about $85.50/barrel. The threat of an M. East confrontation drives up the price of crude oil.
Key Points & Considerations
The price of crude oil is trading evenly before the release of US economic statistics.
A rise in tensions in the Middle East war might raise the cost of oil.
API Weekly Oil Stocks & EIA Crude Inventories Update are both scheduled to be released.
Markets are concerned with the situation’s possible escalated action. Which might cause interruptions throughout the Arab world, possibly interrupting supply from one the globe’s top producing areas. Inside Israel, there have been mounting calls to reconsider the possible extent of an assault from the ground of the Gaza Strip. Something was originally expected in the short future.
Nevertheless, diplomacy attempts are continuing to defuse hostilities in the Strip of Gaza between Israeli and Hamas. Furthermore, American crude inventories were predicted to climb this past week, according to an initial Reuters survey on Monday. Before of the API Week WTI Crude Oil Market Inventory & EIA Crude Oil Reserves Update.
Source: EIA
China to allow Funds into Government Bonds
The disclosure of China’s intention of allowing slightly over 1 trillion yuan in further government debt offerings. Which appears to have significantly boosted investor confidence. Furthermore, productive negotiations among the United States with China during their maiden economic collaboration meet have supported this optimistic view. And a consequence, the secure haven of the United States dollar is under strain, and the costs of oil are rising.
The Benchmark (DXY) continues to lose ground, sitting near 105.60. The yield on the 10-year Treasury bond quickly changed its direction shortly after spiking at 5.02 percent. Falling to 4.81 percent in the most recent report. If American bond rates continue to fall. the dollar’s value declines, rendering commodity sold in USD more desirable, such as oil in its crude form.
Marketplace investors are preparing for a busy week of economic reports. The US S&P Global PMI is going to be closely watched on today. Backed by the third quarter (GDP) numbers on Thurs. Upon Friday, the workweek will conclude with a focus on PCE data
SUPPORT & RESISTANCE – PIVOT POINTS
S3 84.556 S2 85.101 S1 85.444 R1 85.989 R2 86.191 R3 86.736 PIVOT 85.646
