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Will WTI Crude Break $100 Amid Middle East Tensions and Inventory Draws?
The Middle East Tension
With the ongoing Middle East hostilities and constrained shipping routes are sharply intensifying global supply pressures as global crude prices skyrocketed near $100 per barrel following Houthi strikes on Saudi energy sites and reported blasts at Iran's Kharg Island terminal. Also, global stockpiles continue to draw.
Source: Bloomberg
OTHER FACTORS PUSHING TO PRICE MOVEMENTS OF WTI
Economic Calendar this week with indicators significant to price movements for the WTI or West Texas Intermediate are American Petroleum Institute (API), U.S. Energy Information Administration (EIA) and Baker Hughes Rigs Count.
Source: Finlogix
TECHNICALS OF WEST TEXAS INTERMEDIATE
Source: ACY MetaTrader5
Price level 92 has been breached and previous week its price level was noted as the elevated price region where markets would expect pertinent to inventory depletion.
The (West Texas Intermediate) WTI’s Bollinger Bands and Relative Strength Index currently at 67 level approaching overbought conditions.
Resistance
- 97.000 as the highest, structural ceiling where breach would heighten broader supply shocks, next target 100.000 level
- 92.300 region marks the price pocket where markets expect pertinent inventory depletion or as the inventory and demand zone
Support
- 84.429 once geopolitical tensions ease regarding the US-Iran standoff including inflation pressures start to cool.
Markets must monitor the interaction around the 50.0% and 61.8% Fibonacci levels alongside Relative Strength Index momentum as oil tests critical mid-channel boundaries.
We see the market keeps the bullish continuation intact yet the bias faces a stiff test as it approaches the 92.300 inventory-depletion expectation zone and the heavy overhead resistance ceiling near 97.000 with earlier data highlighted significant inventory draws such as a 4.45-million-barrel decline in late August pointing to sturdy domestic consumption.
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