WTI dives on Saudi pledges for market stability

Despite an earlier increase amid worries about an Israel-Hamas conflict, WTI crude falls to $82.86 per barrel as at the time of writing; down -1.93%. Price increases are tempered by Saudi Arabia’s commitment to market stability and potential intervention.

Data on global inflation as well as US inflation and Russian output decisions provide more levels of price influences. The US benchmark for crude oil, (WTI crude oil, fell more than 1.80% on Wednesday as Saudi Arabia committed to stabilize the market amid concerns that the Middle East crisis will disrupt supplies. As a result, WTI is currently trading at $85.97 a barrel after reaching a daily high of $88.20.

Geopolitical concerns are taken into account by oil prices. On Monday, oil prices rose as a result of worries that the conflict between Israel and Hamas may intensify and reduce supplies around the world.

Saudi Arabia nevertheless intervened and declared that it was working with local and international partners to avert an escalation, reiterating their commitment to maintain market stability. According to sources cited by Reuters, if the violence worsens, WTI could increase to $100.


The European Central Bank (ECB), which anticipates a 0.4% contraction in its economy, might not hike rates again in the interim, according to reports that German inflation is declining. On the other hand, according to Russian President Vladimir Putin, Russia maintains its 300K crude oil output reduction.

Data-wise, the US economic calendar included the Producer Price Index (PPI) for September, with data slightly above expectations, indicating that another rate hike is imminent. However, Thursday’s consumer-related data may prevent policymakers from raising rates.

WTI has retraced, indicating that petroleum is in the midst of a pullback, after surging strongly towards a multi-month high of $95.91 per barrel. This is due to the US crude oil benchmark, which is now trading at roughly $81.99 and $81.65, respectively, remaining above both the 200-DMA and the most recent cycle low. The $80.00 per barrel would be shown by an extension below. On the other hand, if WTI regains the 50-DMA at $88.31, it might make the $90.00 level more potential.