WTI Crude Oil is being traded around $85.00, not changing much after going up due to the recent conflict between Hamas and Israel over the weekend. This conflict has made oil prices rise because investors are worried about problems in the Middle East.
People are concerned that the fighting in Gaza might spread to other countries nearby, like Iran and Saudi Arabia, which are important for oil production. There is also worry about the Strait of Hormuz, which is a crucial route for oil transportation, and any trouble there could affect global oil supply.
Iran supports Hamas, but they say they are not involved in the Gaza conflict. However, some people are still worried that the United States might impose more sanctions on Iran because the U.S. supports Israel.
U.S. politicians are not helping ease the worries of oil investors. Senator Lindsey Graham suggested that the U.S. should threaten to damage Iran’s oil facilities if the conflict escalates. This has made oil traders pay attention to what the U.S. says.
Oil prices had gone down because of lower demand for oil and high gasoline reserves. However, if China starts stimulating its economy, it could increase demand for oil and affect the supply.
As for the technical side, WTI Crude Oil prices went up by more than 5.5% on Monday and are now around $85.00. But they are still lower than the recent highest price of $93.98. The charts show that the price went down recently and is now around the 50-day Simple Moving Average, with support from the 200-day SMA at around $78.00.