West Texas Intermediate (WTI) crude oil has started the new week on a softer note, pulling back slightly after hitting a five-month high above the $75.00 mark on Friday. Currently, prices are around $73.75 to $73.80, down about 0.35% for the day. This dip seems to be largely due to profit-taking after last week’s strong performance, which marked the biggest gain in over a year.
Despite this slight decline, the market remains supported by ongoing tensions in the Middle East, particularly the Israel-Hamas conflict. Concerns are growing that Israel may target Iran’s oil production facilities, which adds to the fears of potential supply disruptions in the region. Additionally, recent positive U.S. employment data has bolstered expectations about the resilience of the U.S. economy. Alongside this, there is optimism surrounding China’s stimulus measures, which are hoped to spark a recovery in fuel demand, especially since China is the world’s largest oil importer.
Looking ahead, there aren’t any significant economic reports set for release from the U.S. on Monday. However, speeches from key Federal Open Market Committee (FOMC) members are expected to influence the demand for the U.S. Dollar, which could, in turn, impact dollar-denominated commodities like crude oil. Moreover, the evolving geopolitical situation in the Middle East is likely to create short-term trading opportunities in the oil market.
