WTI tops $70.00 on positive sentiment and geopolitical tensions

• WTI advances on sentiment and the halt in Kurdistan oil exports.
• Investors forgot about the problems in the US banking system after the acquisition of Silicon Valley Bank by First Citizens BankShares.
• WTI Price Analysis: Stuck in neutral to downtrend but could rally as high as $80 once RSI turns bullish.

The Western Texas Intermediate (WTI), US crude oil benchmark is advancing strongly on bullish sentiment. Another reason for the jump in oil was the stoppage of crude oil exports from Iraqi Kurdistan and Putin’s nuclear threats. At the time of writing these lines, WTI is trading at $71.13 per barrel.

A vote of confidence in the banking system caused a change in the mood of the markets after First Citizens BankShares, Inc. acquired Silicon Valley Bank (SVB). Reports that the US authorities are considering expanding emergency lending facilities provided another reason for hope, which was applauded by investors.

WTI reversed course after the appearance of a doji on its daily chart after Friday’s close. Hence, oil traders are threatening to push prices to the 20-day EMA at $72.10.

In the Middle East, an arbitration case won by Baghdad halted exports of 450,000 bpd from Kurdistan to Turkey because Kurdistan needs Iraq’s consent to ship oil.

Russian President Vladimir Putin’s announcement to deploy tactical nuclear weapons in Belarus in an attempt to intimidate the West over its support for Ukraine also contributed to higher oil prices. NATO called Putin’s comments “dangerous and irresponsible,” and Ukraine called for a UN Security Council meeting.

At the same time, Russian Deputy Prime Minister Alexander Novak commented that Moscow is close to reaching its 500,000 crude output, down to about 9.5 million bpd.

WTI Technical Analysis

WTI remains neutral to downish, although it is approaching the 20 day EMA. Oscillators remain bearish, with the Relative Strength Index (RSI) below 50 but heading higher. Therefore, if the RSI turns bullish, WTI could rally to $80.00. Therefore, the first resistance for WTI would be the 20-day EMA at $72.10. A break of the latter would expose the 50 day EMA at $74.93, followed by the 100 day EMA at $78.06, before testing $80.00.