West Texas Intermediate (WTI) prices plummet as geopolitical tensions fail to spark an oil price surge
Volatility in the price action on Friday saw a swift upward move for West Texas Intermediate (WTI) prices, reaching an intraday high of $85.50 a barrel, only to plummet and post a weekly decline after Iran downplayed a reported Israeli attack.
Meanwhile, OPEC+ members, led by Saudi Arabia and Russia, agreed last month to extend voluntary output cuts of 2.2 million barrels per day (bpd) until the end of June, which has helped keep oil prices elevated.
Additionally, U.S. energy firms added oil and natural gas rigs for the first time in five weeks, according to energy services firm Baker Hughes in its closely followed report on Friday.
The oil and gas rig count, an early indicator of future output, rose by 2 to 619 in the week ending April 19.
Based on technical indicators, the rebound in the Relative Strength Index (RSI) 3-day 'lookback' indicator is negative but oversold, while the MACD remains negative, and the ADX indicates a ranging market.
Given the high risk, traders should reconsider their positions due to Friday's movements.
Meanwhile, support is now viewed at $79.80-90, with reevaluation recommended at that point.
On the upside, interim resistance holds at $84.20-40, and further assessment should be conducted there.
Daily Chart West Texas Intermediate (WTI)
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