WTI advances on Middle East escalation, US production contraction

West Texas Intermediate (WTI), the US crude oil benchmark, rises 0.25% late in the North American session as the Israel-Hamas conflict escalates with Israel rejecting a ceasefire offer. That, along with diminished production in oil refined products, sponsored WTI's advance, as it trades at $76.54 per barrel.

Oil prices climb as Israel-Hamas conflict intensifies, US refining cuts impact supply

Israeli military continued their offensive on the Gaza Strip on Friday, sparking a jump in oil prices of around 3% in the previous day. Additionally, refining plants in the US were shut down, which boosted the prices of Gasoline and Diesel.

Ukraine’s attacks against two oil refineries in Southern Russia, and the latter exporting more crude oil in February than planned with the OPEC+, was a tailwind for WTI price.

In the meantime, the US Treasury Department sanctioned three companies based in the United Arab Emirates (UAE) and one ship registered by Liberia for violating a cap placed on the price of Russian oil by a coalition of Western nations.

WTI Price Analysis: Technical outlook

Oil prices are set to remain range-bound but tilted to the downside, as the 200-day moving average (DMA) at $77.29 remains the first resistance level for prices. A breach of the latter could pave the way for further gains toward the $80.00 pb. Nevertheless, despite being bullish, the Relative Strength Index (RSI), the slope shifted flat, and strong resistance would open the door to challenge the 20-DMA at $74.53. A breach of the latter will expose the latest swing low of $71.46.