FX.co ★ GokBoruHunter | CL/Crude Oil

WTI OIL Daily Outlook Update West Texas Intermediate (WTI) futures, traded on NYMEX, rose 1.42% to close at $101.00 in the European trading session on Wednesday. The increase in oil prices is due to the threats made by both the US and Israel about being ready to attack Iran again after the elections in their respective economies. According to strategists from Deutsche Bank, "Brent crude continues its upward momentum since it is +1.48% higher overnight, as the WSJ reported the Trump administration urging Gulf states to be prepared for a new operation against Iran after the midterms." Beyond the geopolitical move, according to the research team at Danske Bank, "In his post-election speech, Netanyahu outlined the possibilities for a fresh joint move with President Trump against Iran." On top of this, Deutsche Bank says reduced US energy supply has helped support oil prices. "US crude inventories fell by about 2 million barrels last week, indicating continued reduced supply", the bank noted in the report. Also, increasing tension between Saudi Arabia and the Houthis aligned with Iran in Yemen has increased the risk to energy supply. A spokesman for Yemen's Houthis said on Tuesday that a ballistic missile was launched towards the Ras Tanura oil refinery in eastern Saudi Arabia, which is the largest refinery in Saudi Arabia, as reported by Reuters. On the D1 chart, WTI US Oil is trading around $101 with an upward bias, holding decisively above the 20-day Exponential Moving Average (EMA) at $96.52. The short-term trend structure remains constructive as long as the spot price trades above this moving average, with RSI at 63 indicating a strong but not yet overbought uptrend. Initial support is at the 20-day EMA at $96.52, and a break below would signal a loss of bullish momentum. On the upside, the nearest resistance is the October 23 high at $103.28, followed by the key May 18 high at $104.74.