WTI Oil Rises Above $63 on Middle East Tensions.
WTI rises past $63.00 amid escalating Middle East tensions.
FUNDAMENTAL OVERVIEW:
West Texas Intermediate (WTI), the U.S. crude oil benchmark, is trading around $63.50 in early North American hours on Wednesday, supported by rising geopolitical tensions. Prices gained after Israel’s air force struck Hamas’s senior leadership in Doha, Qatar, sparking fears of a broader Middle East conflict and potential supply disruptions.
The attack followed Israel’s earlier warning of plans to strike Gaza, intensifying concerns over stability in global oil flows. However, the U.S. Energy Information Administration (EIA) cautioned that rising inventories could keep crude prices under pressure in the coming months, limiting further upside momentum for oil.
On the data front, the American Petroleum Institute (API) reported a build of 1.25 million barrels in U.S. crude stockpiles for the week ending August 29, compared with a 622,000-barrel increase in the prior week. Year-to-date, U.S. inventories have climbed 8.7 million barrels, based on API figures, highlighting persistent supply-side pressure despite heightened geopolitical risks.
CRUDE OIL TECHNICAL ANALYSIS CHART:
Technical Overview:
Crude Oil is trading within a down channel.
Crude Oil is moving above all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in a Bullish Zone, while the Stochastic oscillator suggests a Positive trend.
Immediate Resistance level: 65.35
Immediate support level: 63.18
HOW TO TRADE CRUDE OIL
On the higher time frame, Crude Oil, after falling below the support line, found strong buying interest and reversed sharply to the upside. The rally broke through the resistance zone and formed a bullish engulfing pattern, signalling potential upward momentum. If prices hold above this level, Crude Oil is likely to extend its gains toward the next significant resistance.