WTI Crude Oil Near $71 Amid Geopolitical Risks and Rising Demand
WTI crude oil futures are trading at $71.05 per barrel on Monday, holding near a two-week high.
Rising geopolitical tensions involving major oil producers, including Russia and Iran, have heightened concerns over potential supply disruptions, providing upward momentum for prices.
Last week, oil prices recorded their largest weekly gain in two months after Ukraine launched its first missile attack on Russia using U.S. and British weaponry. In retaliation, Russia deployed a newly developed hypersonic ballistic missile.
Additionally, Iran’s plans to expand its nuclear fuel-making capacity following censure by the UN atomic watchdog have exacerbated tensions, raising fears of further disruptions in the global oil market.
Rising Demand from Asia Boosts Sentiment
Oil prices have also found support from growing demand in two of the world’s largest importers, China and India. China’s crude oil imports surged in November as lower prices prompted stockpiling.
Meanwhile, Indian refiners reported a 3% year-on-year increase in crude throughput in October, reaching 5.04 million barrels per day, driven by rising fuel export demand.
The combined effect of geopolitical risks and growing demand from Asia has supported the bullish momentum in oil prices. Traders now focus on upcoming supply updates and any potential shifts in geopolitical tensions as key drivers for further price action.
Technical Outlook: Key Levels to Watch
WTI crude oil is trading within an ascending channel, supported by the 50 EMA at $69.67, which acts as dynamic support. The Relative Strength Index (RSI) has dipped to 60.76, reflecting moderation in bullish momentum.
Key Levels to Monitor:
- Resistance Levels: $71.47 (current resistance), $72.16, and $72.83.
- Support Levels: $70.59 (pivot point), $69.87, and $68.86.
A sustained breakout above $71.47 could push WTI toward the $72.16 mark, while failure to hold above $70.59 may trigger a pullback to test lower support levels.
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