The Week in Review: Crude Oil Stability and Dollar Index Retracement
- After a volatile week, Crude Oil settles near $75 on Friday.
- Israel’s readiness to retaliate against Iran boosts Crude Oil prices.
- The US Dollar Index eases after hitting a two-month high.
Crude Oil has found stability around the $75 mark, showing resilience after fluctuations earlier in the week. The news of Israel’s potential retaliation against Iran has added support to the Oil prices. This follows a conversation between US President Joe Biden and Israel Prime Minister Benjamin Netanyahu, where President Biden advised against attacking Iranian oil facilities. Additionally, the aftermath of Hurricane Milton in Florida and the reopening of Oil platforms in the US Gulf of Mexico are contributing factors to the market sentiment.
As of the latest update, WTI Crude Oil is trading at $74.73, while Brent Crude stands at $78.55.
Oil News and Market Insights: Weekend Highlights
- Israel’s war cabinet is convening to determine its response to Iran’s actions, following discussions between President Biden and Prime Minister Netanyahu.
- US Shale prices are estimated at $66 per barrel, indicating a potential increase in production to meet market demands and stabilize prices.
- The Baker Hughes Oil Rig Count report is scheduled for 17:00 GMT, with the previous count at 479 rigs.
Oil Technical Analysis: Weekend Forecast
With geopolitical tensions rising and potential stimulus announcements from China, the Oil market is poised for a dynamic weekend. Traders should anticipate significant developments in the Middle East and global economic policies.
Key levels to watch:
- Resistance levels: $75.61 (100-day SMA) and $77.17 (200-day SMA).
- Support levels: $72.52 (55-day SMA), $71.46 (February 5 low), $70.00, and $67.11.
US WTI Crude Oil: Daily Chart
WTI Oil FAQs
What is WTI Oil?
WTI Oil, also known as West Texas Intermediate, is a type of Crude Oil characterized by its low gravity and sulfur content. It is a high-quality Oil sourced in the US and serves as a benchmark for the global Oil market.
What influences WTI Oil prices?
WTI Oil prices are influenced by factors such as supply and demand dynamics, global economic conditions, political events, OPEC decisions, and the value of the US Dollar.
How do inventory reports impact WTI Oil prices?
Weekly inventory reports from API and EIA reflect changes in Oil supply and demand, affecting prices. Decreasing inventories signal higher demand, while increasing inventories indicate oversupply.
What is OPEC’s role in the Oil market?
OPEC, a group of major Oil-producing countries, sets production quotas that impact Oil prices. Their decisions to adjust production levels can influence market stability.