WTI crude oil jumps beyond $73 on supply worries

After a decision on an arbitrage between Kurdistan and Baghdad, supply risks stopped 450K barrels of shipments through Turkey. The benchmark prices of US crude oil are supported by a weak US dollar. Although WTI has a neutral to bearish trend, oscillators have recently turned positive, pointing to further potential.

Due to problems with supply, WTI crude oil, the benchmark price, rises in the middle of the North American session. Also, a risk-on impulse hurt safe-haven assets like the dollar. WTI is currently being traded at $73.38 per barrel.

After 450K barrels of oil shipments through Turke from the Iraqi Kurdistan area were stopped as a result of an arbitration decision confirming that Baghdad’s consent was required to transport the oil, WTI saw a $3 increase.

After First Citizens BancShares purchased the deposits and loans of Silicon Valley Bank (SVB), opinion changed. In response, global bank shares recovered as the crisis in the banking sector subsided.

As a result, safe-haven assets like the US Dollar (USD) experience global declines. The US Dollar Index (DXY) drops 0.38% to 102.449. A weaker greenback makes oil cheaper for international buyers and lifts WTI’s price.

Oil prices soared as a result of the West’s backing for Ukraine and Russian President Vladimir Putin’s announcement to station tactical nuclear weapons in Belarus as a form of intimidation. Putin’s remarks were labelled “dangerous and reckless” by NATO.

Aleksandr Novak, the deputy prime minister of Russia, said at the same time that Moscow is almost at its 500K crude output goal of 9.5 million bpd.

Although clearing the 20-day EMA, WTI is still neutral to negatively inclined technically. Oscillators turned bullish, with the Relative Strength Index (RSI) above 50, which could pave the way for further upside. That said, WTI could rally to $80.00. Hence, WTI’s first resistance would be the 50-day EMA at $74.93, followed by the 100-day EMA at $78.06, before testing the $80.00 mark.