Oil Supply Concerns Eased Despite Middle East Tensions

On Tuesday, WTI crude futures slid to approximately $78 per barrel, extending losses from the previous session. Investors remained attentive to developments in the Middle East, particularly following the tragic helicopter crash that claimed the life of Iran's president and raised health concerns regarding Saudi Arabia's king. Despite these events, concerns about oil supply disruptions were tempered by the absence of immediate indications of disruptions to oil flows. Investors exercised caution as they awaited OPEC's forthcoming meeting on June 1, where discussions about potentially maintaining production cuts would take place. Recent occurrences, including Ukraine's attacks on Russian refineries and a Houthi missile strike on an oil tanker bound for China in the Red Sea, continued to pose risks to global supply. On the demand side, Atlanta Fed President Raphael Bostic hinted that US interest rates may trend higher than what markets anticipate, drawing comparisons to rates observed in the 1990s.

Although there was a movement above the 200-day average in crude oil, it couldn't sustain here. The first support level in this case will be 77.60. If this level is broken downwards, 76.90 and 75.80 can be followed, respectively. However, if there is an upward movement, the first resistance to be encountered will still be 80.10. If this level is maintained above, 81.10 and 82.00 levels can be monitored.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
82.00	81.10	80.10	77.60	76.90	75.80