WTI Crude Oil News: USOIL Rises to $70.77 as Israel Keeps Iranian Strikes Open

The U.S. has been working to ease Israeli concerns about potential Iranian retaliation by deploying additional defense systems to the region.

The Pentagon recently confirmed the deployment of a Terminal High Altitude Area Defense (THAAD) battery and 100 soldiers to bolster Israel’s air defenses.

However, U.S. officials, speaking anonymously, emphasized that Israel’s assurances regarding the avoidance of Iranian oil and nuclear sites are not guaranteed and could change depending on shifting circumstances.

Good morning guys! I'll be helping everyone indiscriminately on $WTI #CrudeOil.
This kind of news is not easy to digest, because it changes the initial plans.
There are basically 2 solutions:
– If you're already in and you think you can't add capital to support the drop (as I've… pic.twitter.com/hoHoUHm5KS

— cobra (@cobraWstreet) October 15, 2024

U.S.-Israel Diplomacy and Energy Market Reaction

The assurances given by Israel to avoid targeting Iranian oil sites initially provided some relief to global energy markets, contributing to Tuesday’s significant decline in crude prices.

The Biden administration’s diplomatic efforts appear to be aimed at preventing further disruptions to the global oil supply chain, which has already been strained by geopolitical conflicts and production adjustments from OPEC.

Yet, Netanyahu’s remarks about keeping all options open have reintroduced uncertainty into the energy markets. Investors are now cautious about the possibility of supply chain disruptions, especially if tensions between Israel and Iran escalate further.

OPEC and IEA Demand Forecasts Add Pressure

Adding to the downward pressure on oil prices earlier this week was the Organization of the Petroleum Exporting Countries (OPEC) announcement cutting its global demand growth forecast for 2024.

OPEC reduced China’s demand forecast to 580,000 barrels per day (bpd), citing ongoing economic challenges and the country’s gradual shift toward cleaner energy sources.

Despite downward projections, OPEC forecasts global demand growth to be approximately one mb/d higher than the forecasts from the IEA and EIA. pic.twitter.com/HKb0ofbXvP

— International Energy Forum (@IEF_Dialogue) October 15, 2024

The International Energy Agency (IEA) also issued a forecast pointing to a global oil surplus in 2024, with demand growth expected to slow to 900,000 bpd.

These revisions have weighed heavily on crude oil prices, reflecting expectations of oversupply in the market.

Technical Outlook for WTI Crude Oil

WTI Crude Oil is currently trading at $70.77, with the 4-hour chart signaling a bearish outlook. The price has broken below its 50-period Exponential Moving Average (EMA), which is now acting as dynamic resistance at $72.88.

Key support sits at $69.81, and if breached, further declines to $68.14 and $66.40 could be expected.

Key Price Levels:

• Pivot Point: $71.51

• Immediate Resistance: $72.88

• Next Resistance: $73.39

• Next Resistance: $74.83

• Immediate Support: $69.81

• Next Support: $68.14

• Next Support: $66.40

Technical Indicators:

• RSI: The Relative Strength Index (RSI) is currently at 39.44, indicating bearish momentum, but still above oversold territory. This suggests potential for further downside before a reversal.

• 50 EMA (50-Day Exponential Moving Average): At $72.88, this EMA is providing dynamic resistance, and prices remain bearish as long as they stay below this level.

Conclusion: WTI Crude Oil faces continued bearish pressure, with immediate resistance at $72.88 and a downside risk if support at $69.81 is breached.

Traders should monitor the RSI for oversold conditions, which could signal a potential rebound. However, the broader outlook remains bearish as long as prices stay below the 50 EMA.