Saudi Price Hike: The price of West Texas Intermediate (WTI) crude oil snapped its losing streak on Monday, climbing to around $78.20 per barrel during Asian trading. This uptick comes after several key developments in the global oil market.
Saudi Arabia Raises Oil Prices for June: Signaling confidence in summer demand, Saudi Arabia increased its Official Selling Prices (OSPs) for crude oil sold to key regions including Asia, Northwest Europe, and the Mediterranean. This move suggests the world’s top oil exporter anticipates a rise in consumption during the peak season.
OPEC+ Output Cuts Likely to Extend: The Organization of the Petroleum Exporting Countries (OPEC) and its allies (OPEC+) are expected to maintain current oil production levels for an additional three months. This decision will be confirmed at their upcoming meeting in June, where they will reassess output quotas. OPEC+ producers are also prepared to extend the existing voluntary production cuts of 2.2 million barrels per day (bpd) if oil demand doesn’t recover as projected.
Geopolitical Concerns Boost Prices: Renewed worries about a potential breakdown in the Gaza ceasefire deal sent oil prices higher. The ongoing conflict between Israel and Hamas has raised concerns about supply disruptions in the Middle East, according to a Reuters report. Hamas’ demand for the release of hostages in exchange for a ceasefire was rejected by Israeli Prime Minister Benjamin Netanyahu, raising fears of further escalation.
Lower US Jobs Data Fuels Rate Cut Hopes: The recent release of lower-than-expected US jobs data has rekindled speculation about potential interest rate cuts by the Federal Reserve later this year. This could stimulate economic activity in the United States, potentially leading to higher oil demand. Additionally, lower interest rates tend to weaken the US dollar (USD), making oil purchases cheaper for countries using other currencies.
WTI Oil Price Table after Saudi Price Hike
Metric | Price |
---|---|
Today’s Last Price | $78.15 |
Daily Change | $0.35 |
Daily Change % | 0.45% |
Today’s Open | $77.80 |
Additional Technical Indicators (for reference only):
- Daily SMA (Simple Moving Average):
- 20-day SMA: 82.83
- 50-day SMA: 81.44
- 100-day SMA: 77.93
- 200-day SMA: 79.82
- Daily Fibonacci Levels:
- 38.2%: $78.37
- 61.8%: $78.75
- Daily Pivot Points:
- Support 1 (S1): $77.26
- Support 2 (S2): $76.71
- Support 3 (S3): $75.66
- Resistance 1 (R1): $78.85
- Resistance 2 (R2): $79.90
- Resistance 3 (R3): $80.44