- WTI briefly rose to $80.00 per barrel before retreating.
- US crude oil saw its highest bids since the beginning of the month.
- Risk appetite struggles to drive broad asset categories firmly higher.
US West Texas Intermediate (WTI) crude oil briefly rose above $80.00 per barrel on Monday as risk appetite remains near the surface, but bullish momentum remains thin. WTI fell again in a range close to $70.80, as statements by Federal Reserve (Fed) officials reduce risk appetite, limiting buying pressure to start the new trading week. trade.
Bullish pressure is brewing at the bottom of global crude oil markets after a helicopter carrying Iranian President Ebrahim Raisi and Iranian Foreign Minister Hossein Amir-Abdollahian crashed over the weekend. As Iran prepares to go to the polls to elect a new president, energy investors will be watching developments closely. Federal elections are expected to be held in Iran in the next 50 days.
In crude oil markets, the overall planned increase in refineries has not materialized, meaning supply chains are at risk of being overwhelmed by production that continues to exceed global demand. A disproportionate number of refineries went offline for maintenance in spring 2024, and energy traders had been betting on a rebound in crude oil demand after those facilities returned to service. Price-pressured and cost-obsessed consumers have cut back on spending on liquid fuels, leaving production chains fuller than investors had anticipated.
The barrel count from the American Petroleum Institute (API) and the Energy Information Administration (EIA) fell more than expected last week, helping to bolster near-term barrel bids. Crude oil traders will be watching this week's crude stockpile updates to gauge the extent to which a supply glut could loom.
WTI Technical Outlook
US crude oil is undergoing technical consolidation between $80.00 and $79.00 as energy traders eye a support/resistance band around $79.50. Prices have recovered from multi-month lows near $76.40, but bullish momentum remains limited.
WTI hourly chart
WTI daily chart
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.
