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WTI Breaches $105: Middle Eastern Pipeline Disruptions and Logistics Crises Drive Global Oil Higher
HIGHLIGHTS
PRICES SURGE DUE TO SAUDI ARABIA PIPELINE
Source: BBC
Price of oil soared as a key Saudi pipeline remained offline following its recent attacks, while markets closely monitored ongoing tensions with Iran.
In addition, due to Middle Eastern pipeline closures and halted production in Libya, prices stayed above $105 per barrel on Wednesday.
Also, the continued energy infrastructure attacks between Russia and Ukraine added more pressure to global markets, bypassing an earlier announced ceasefire agreement.
TANKER RATES HIT MILLIONS
Source: Bloomberg
The oil tanker charter rates soared a record $1 million a day and this sudden increase is due to regional conflicts, a global ship shortage, and heavy demand for refined fuels.
Disrupted trade routes and longer voyages are keeping ships tied up longer, tightening supply even further.
Worse shipping headlines or larger inventory draws could drive WTI up toward above $105.
However any peace signals or a stronger U.S. dollar may prompt a swift profit-taking slide back to $95.
KEY TO PRICE MOVEMENTS
Aside from geopolitical tensions, economic indicators likely to affect the WTI price this week in relation to the inventories.
ECONOMIC CALENDAR
EIA Crude Oil Stock Change Sep 16
Baker Hughes Oil Rig Count Sep 19
TECHNICALS FOR WTI
Source: ACY MetaTrader5
The trend is bullish medium-term, but nearing an inflection point that will test its short-term exhaustion.
USWTI is pushing near upper resistance and supply-related barriers while holding firm over important inventory support levels.
Support 92.115 to 95.000 near 60% Fibonacci Retracement
Resistance 100.7, 102.3, 104.6
Relative Strength Index 69.25
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