Crude Pushes Through First Resistance Level

Crude has pushed through its first resistance level, as continued Middle East tensions outweigh concerns for demand.

• WTI MAR 24 up 1.8% at 78.27$/bbl
• WTI’s first resistance level was : $78.14/79.29 - High Jan 30 / High Jan 29 and key resistance
• Its second resistance level is $82.34 - 76.4% retracement of the Sep 19 - Dec 13 bear cycle
• The market continues to view events unfolding in the Middle East with uncertainty and remains volatile to any headlines that could show direction of the ongoing conflict or impacts to supplies.
• The number of tankers that have diverted around southern Africa continues to rise as shippers look to avoid the Red Sea, according to Oil Brokerage.
• 156 oil tankers have diverted from the Red Sea via the Cape of Good Hope since US and UK strikes on the Houthis began. This represents 2% of the global tanker fleet.
• Meanwhile, above forecast CPI numbers are capping upside as sustained inflation worries cold delay Fed rate cuts, inhibiting economic growth and trickling down to a weaker crude demand appetite.