- WTI has extended the move to the upside and has climbed back above the $104.00 level.
- A worsening in sentiment has benefited the safe-haven USD and weighed on dollar-denominated crude oil prices.
- Comments of lower demand from the IEA may offset supply concerns.
the price of oil WTIthe benchmark for US crude oil, has extended the previous day’s move higher and has risen back above the $104.00 level during the Asian session on Friday, amid renewed supply concerns. However, at the time of writing, the WTI returns initial profits and remains stable just above $102.00.
WTI has extended the bounce from the previous day and has risen above the $104.00 level during the Asian session on Friday. just a couple days agothe WTI price was in the area of weekly lows, below the $94.00 level at levels not seen since last February 27 and having returned all the profits since the war between Russia and Urania began.
Following the lack of progress in the peace talks between the two countries at war, WTI strengthened strongly yesterday and climbed back towards $102.00 amid supply shortage fears due to sanctions.
The movement has extended during the Asian session today, with prices reaching a high near $104.50.
However, at the start of the European session, a worsening in market sentiment has benefited the safe-haven US dollarwhich has directly weighed on crude oil prices, denominated in dollars, and has caused a slight correction in prices.
In addition, the head of the International Energy Agency (IEA), Fatih Birol, warned on Friday that “the emergency in the oil markets may worsen”, saying that “a reduction in oil demand does not depend only on governments, but also on citizens and corporations.” The measures include lower speed limits, working from home, more public transport and urban car-free days. “These measures can quickly reduce oil demand by 2.7 million barrels of oil per day within four months.”.
These comments of lower demand may offset supply concerns, which has also helped pull back the price of WTI, which at time of writing is retreating to the region of daily lows near the $102.00 level.
WTI technical levels
Source: Fx Street
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
