West Texas Intermediate Prices Surge Amid Rising Middle East Tensions
West Texas Intermediate Prices Surge Amid Rising Middle East Tensions
Volatility returned sharply for West Texas Intermediate (WTI) oil on Tuesday, as prices surged amid escalating concerns that tensions in the Middle East could intensify, potentially disrupting crude production in the region.
This surge follows Iran's largest military strike against Israel to date.
Later on Wednesday, a panel of ministers from the Organization of the Petroleum Exporting Countries and their allies, collectively known as OPEC+, will meet to assess market conditions.
No changes to their existing policies are anticipated during this gathering.
In December, OPEC+ plans to increase monthly production by 180,000 barrels per day (bpd).
Technical indicators rebound with the 3-day Relative Strength Index (RSI) positive along with the Moving Average Convergence Divergence (MACD), while the Average Directional Index (ADX) indicates a ranging market.
Following the late comeback, the breakout from the $68.65-$70 range now targets $71.45-$71.60, potentially extending to the $72.60-$72.80 range.
It's advisable to reassess from this point.
Given the bullish, engulfing Japanese candlestick pattern, any pullback will likely be limited.
Daily Chart West Texas Intermediate (WTI)
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