- WTI extends its bullish trajectory on Monday and reaches a new yearly high.
- Concerns about tightening global supply continue to benefit raw materials.
- Expectations of a hawkish Fed could slow the rise of WTI.
US crude oil prices West Texas Intermediate (WTI) They extend last week's strong rises of almost 4% and gain some positive traction on Monday. Momentum lifts black gold to the $81.45-$81.50 zone, the highest level since November 2023during the early stages of the European session and is fueled by concerns about the tightening of supply.
In the context of Disruptions caused by Houthi attacks in the Red Sea, Ukraine stepped up drone attacks on Russian oil refineries During last week. Additionally, Israeli Prime Minister Benjamin Netanyahu confirmed on Sunday that he will press ahead with his plans to enter the Rafah enclave in Gaza. This occurs after OPEC+ members decided to extend production cuts of 2.2 million barrels per day until the second quarter and will fuel concerns about global supply shortages, which, in turn, is seen as a tailwind for crude oil prices.
However, it remains to be seen whether the bulls can maintain their dominant position or choose to take some profits amid expectations that the Federal Reserve (Fed) will keep interest rates higher for longer, which could hamper economic activity and reduce fuel demand. Nevertheless, The aforementioned fundamental context favors the bulls and suggests that the path of least resistance for crude oil prices remains upwards. Therefore, any significant corrective pullback could be seen as a buying opportunity and remain limited.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
