2024-02-12 09:55:00
Oil prices start the week lower, with WTI approaching support at $76.00
On Monday (February 12), as of 17:10 Beijing time, crude oil prices rebounded in a V-shape within one hour. U.S. crude oil continuously rebounded from the bottom of the day of $76 to $76.45, a decrease of 0.10%. Brent crude oil continued to trade at $81.8, down 0.47%.
Israel’s bombing of southern Gaza has now ended and the risk of supply disruptions has decreased.
A recent statement from Iran’s foreign minister increased oil’s downside potential following the official said “developments in Gaza are moving towards a diplomatic solution.” The statement came following Hussein Amir Abdullahi The decision came following Young visited Lebanon for talks with senior Hamas officials.
In further bad news, Plains All American Pipeline said in its 2023 financial report presentation that it expects Permian oil production to hit another record this year, reaching 6.4 million barrels per day, Bloomberg reported earlier today.
The report also noted that Goldman Sachs released a new oil demand forecast, noting that expectations for further expansion of electric vehicles have weakened oil demand.
Additionally, on the bearish side, the Federal Reserve once once more stated that it has no immediate plans to cut interest rates, which is bound to keep oil prices within a certain range for the time being.
On the bullish side, the Houthis attacked another vessel in the Red Sea, according to a statement from the UK Maritime Trade Operations Authority. Earlier today, the British TMO reported that the captain of a ship had signaled that the ship had been hit by two missiles in the Bab el-Mandab Strait off the coast of Yemen.
Yemen’s Houthis have been attacking ships transiting the Red Sea despite retaliatory attacks by the United States and Britain on land targets. Most shipping has been diverted from the Middle East to Africa, a route that adds more than a week to the average trip from Asia to Europe. This will increase the cost of transporting oil and help boost oil prices.
WTI crude oil technical analysis
(WTI crude oil daily trend chart source: Yihuitong)
WTI crude oil prices find it difficult to continue rising, showing a bearish bias. Approaching the $76.00 support, the Stochastic is starting to shed negative momentum while the EMA50 index is supporting the price from below.
Looking back at expectations on an intraday basis, the next target is 77.86. A break below 75.90 would invalidate the upside expectations and push prices for some bearish correction before rising once more.
Today’s trading range is expected to be between 75.20 support and 78.00 resistance
The expected trend today is: Bullish
Brent crude oil technical analysis
(Brent crude oil daily trend chart source: Yihuitong)
Brent crude oil is trading softly with prices settling around $82.00, where it will need to gather positive momentum to help push prices back towards the bullish trend towards $83.87.
So far, the bullish trend remains active with support from the EMA50 as long as the 81.00 level holds. If conditions weaken, a break below this level will push the price to the downside and establish a bearish wave with support at 79.60 and 77.44.
Today’s trading range is expected to be between 80.70 support and 83.80 resistance.
The expected trend today is: Bullish
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