The price of West Texas Intermediate (WTI) crude oil reached its highest level this month at $75.42 yesterday after the news that Ukraine attacked a Russian fuel terminal using explosive drones.
Global energy markets were also jolted that rising crude oil prices were under control as the Ukraine attack highlighted how easy it is to bring down the energy supply chain on a large scale.
The sentiment of global crude oil is now exposed with two geopolitical conflicts namely Russia-Ukraine and Houthi attacks in the Red Sea have left the market exposed to serious instability and confused trading activities.
Despite ongoing geopolitical tensions, global crude oil production continues to keep prices tight after last year's surprise bid. It is caused by a limited energy market that fails to meet demand and is not productive.
2024 sees global oil production and exports continue to rise even as expected production quotas from the Organization of the Petroleum Exporting Countries (OPEC) weaken as US crude oil output rises to a record high.
Looking technically, WTI rose almost 4% to $75.42 yesterday and is now back to $74.64 during today's market session.
US crude is still stuck in a narrow zone where the 50-day and 200-day SMAs are between $78.00 and $73.00. It is trading in a tight consolidation range after declining last November.
