(MENAFN- AzerNews) Oil steadied as geopolitical tensions remain elevated andtechnicals provided critical support after a monthlong slump.
Azernews reports, citing foreign media that WestTexas Intermediate settled above $78 a barrel after swingingthrough much of the session. Prices found support at crude's100-day moving average of about $78.15. Tension in the Middle Eastalso lifted oil this afternoon as Israel's war cabinet unanimouslyrejected a cease-fire proposal agreed to by Hamas. The state vowedto continue military operations in Rafah over the objections ofmost Arab and many European states.
Oil has been on a consistent downward trend since early Apriland key timespreads have slumped to the softest levels sinceFebruary, a sign that physical markets are amply supplied. Addingto the bearish sentiment, Russian Deputy Prime Minister AlexanderNovak said the OPEC+ grouping is analyzing the possibility ofincreasing oil output along with all other options before its nextmeeting in June.
Oil posted its biggest weekly drop since February last week remain higher year-to-date as OPEC+ production cuts havetightened the market. While the cartel is expected to keep suppliestight, the demand outlook is clouded, with diesel flashing signs ofweakness.
Prices:
WTI for June delivery fell 0.1% to settle at $78.38 a barrel inNew York.
Brent for July settlement dropped 0.2% to $83.16 a barrel.
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