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)
This content is provided by Australian Financial Services Corporation (AFSC) Pty Ltd (AFSC), trading as Crystal Ball Finance. AFSC is a corporate authorised representative (CAR No. 001275455) of ShareX Pty Ltd (AFSL No. 519872).
For information relating to our financial services, you should refer to our Financial Services Guide.
Crystal Ball Finance content is designed as the opinion only and is general in nature. It does not take account of your objectives, financial situation or needs. Nothing in this content shall be construed as a solicitation to buy or sell any security or product or to engage in or refrain from engaging in any transaction. There are risks involved in any financial investment and trading strategy, and the value of any investment can and does fluctuate and may even become valueless. You should consider the appropriateness of any investment or trading strategy having regard to your circumstances. We recommend that you obtain financial, legal and taxation advice before making any financial investment decision or applying any trading strategy. This content is based on information obtained from sources believed to be reliable, but we do not make any representation or warranty that it is accurate, complete or up to date. We accept no obligation to correct or update the information or opinions in it. Opinions expressed are subject to change without notice. Crystal Ball Finance does not accept any liability whatsoever for any direct, indirect, consequential or other loss arising from any use or application of its content.