Oil Price Rose On Tighter Supply Bets, Gaza Ceasefire Doubt

Fundamental Analysis

* Gaza Ceasefire on Thin Ice: The price of crude oil has climbed, fueled by increasing expectations of reduced global crude supplies as well as geopolitical tension. Reports suggest that Russia plans to decrease oil output while Ukraine persists in targeting the country’s refineries. On Gaza front, the United Nations Security Council passed a resolution on Monday, urging an immediate temporary ceasefire in the Gaza Strip during Ramadan, along with the release of all hostages held by Hamas. However, it’s doubtful that Hamas will comply with the resolution. Tensions in the Israel-Hamas conflict is unlikely to alleviate concerns in short term and potentially will continue disrupt crude supplies from the region.

Technical Analysis

* Technical Breakout: Crude oil price was traded higher following the recent rebound from the support level 80.95. MACD which illustrate bullish momentum signal with the formation of golden cross suggest the commodity to extend its upward momentum.

* Resistance And Targets: If the bullish momentum persists, there’s a strong likelihood that the price will move towards the subsequent level 83.00. A breach above the level could climb further to the next resistance level 85.45. Conversely, if the price fails to break the level 83.00, it could signal a short-term technical correction and lead it back towards the support level of 80.80.

Understand how technical analysis can help you in this trading opportunity.

Potential Risks

Moving forward, oil traders will turn their focus to various U.S economic data for more clues on potential rate cuts. Reduced interest rates usually boost economic activity, resulting in increased demand for WTI prices. Yet, if the report indicates stronger-than-anticipated data, it might postpone the anticipated Federal Reserve rate cuts for this year and limit the upward potential of WTI prices.

Know how to manage trading risks with risk management strategies.

Monitoring

Stay updated on U.S data, Middle East tensions and any shifts in the US Dollar’s strength. by following PU Prime’s market insights and daily financial news.

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Disclaimer: Trading derivatives involves high risks, and market conditions can change rapidly. The content is for informational purposes only and should not be considered as financial advice. Traders should conduct their own research and consider risk management strategies.