- Middle East conflict concerns continue to drive up fossil fuels.
- US inflation concerns briefly knocked back barrel costs before a late-day rebound.
- WTI continues a painful grind in a tug-of-war between supply constraint fears and actual supply.
West Texas Intermediate (WTI) US Crude Oil jumped on Thursday after Iran announced the capture of a civilian oil tanker in the Gulf of Oman early in the day. Official Iranian state media has declared the seizure a retaliation for the US’ seizure of the exact same ship a year ago when it was bound for Iran.
With Middle East tensions, mostly surrounding Iran, continue to plague global supply line concerns, Crude Oil is set to continue seeing a bumpy ride through 2024.
US Crude Oil and oil derivative stocks continue to outrun market forecasts, with massive buildups in gasoline and oil products continuing to burgeon. Despite logistics concerns, Crude Oil supplies continue to thumb a nose at market participants, especially as the US continues to ramp up its domestic Crude Oil production as a net exporter.
Global demand for oil is also on the decline, focused on declining growth from China, and the Organization for the Petroleum Exporting Countries (OPEC) and its loose collection of allied non-member states, OPEC+, continues to grapple with severe production cuts having a limited effect. OPEC members are increasingly unwilling to go along with continuing production cap decreases being strong-armed through OPEC’s leadership, lead by Saudi Arabia. Smaller OPEC members overwhelmingly rely on producing and exporting Crude Oil to balance their government budgets.
WTI Technical Outlook
US Crude Oil is broadly up on Thursday in rough trading, starting the day’s trading below $71.50 per barrel and testing into the $73.00 handle after crossing the key level multiple time throughout the day.
WTI peaked near $74.00 per barrel in early Thursday run-up before descending back into the $72.00.
WTI rebounded once more, testing back into the $73.00 handle as US Crude Oil resumes trading inside of a rough range that has plagued WTI since the start of 2024.
Daily candlesticks continue to trade on the south side of the 200-day Simple Moving Average (SMA) at the $78.00 handle, with near-term action further constrained by the 50-day SMA descending into $74.00.
WTI Hourly Chart
WTI Daily Chart
WTI Technical Levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD retreats from daily highs, holds above 1.0800
EUR/USD loses traction but holds above 1.0800 after touching its highest level in three weeks above 1.0840. Nonfarm Payrolls in the US rose more than expected in June but downward revisions to May and April don't allow the USD to gather strength.
GBP/USD struggles to hold above 1.2800 after US jobs data
GBP/USD spiked above 1.2800 with the immediate reaction to the mixed US jobs report but retreated below this level. Nonfarm Payrolls in the US rose 206,000 in June. The Unemployment Rate ticked up to 4.1% and annual wage inflation declined to 3.9%.
Gold approaches $2,380 on robust NFP data
Gold intensifies the bullish stance for the day, rising to the vicinity of the $2,380 region following the publication of the US labour market report for the month of June. The benchmark 10-year US Treasury bond yield stays deep in the red near 4.3%, helping XAU/USD push higher.
Crypto Today: Bitcoin, Ethereum and Ripple lose key support levels, extend declines on Friday
Crypto market lost nearly 6% in market capitalization, down to $2.121 trillion. Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) erased recent gains from 2024.
French Elections Preview: Euro to “sell the fact” on a hung parliament scenario Premium
Investors expect Frances's second round of parliamentary elections to end with a hung parliament. Keeping extremists out of power is priced in and could result in profit-taking on Euro gains.