WTI trades around $76.00 with an upside potential amid rising Middle-East tensions

• WTI price may advance further due to escalating supply concerns amid Middle-East tensions.
• IDF intercepted around 30 "projectiles" that crossed from Lebanon into northern Israel early Monday.
• Oil prices gained ground due to positive economic data from China and the United States.

West Texas Intermediate (WTI) Oil price hovers around $76.00 per barrel during the Asian session on Monday. Crude Oil prices might extend their winning streak to a fourth consecutive day, driven by increasing supply concerns amid geopolitical tensions in the Middle East.

ABC News reported that the Israel Defense Forces (IDF) intercepted around 30 "projectiles" crossing from Lebanon into northern Israel early Monday. The IDF stated that some projectiles landed in open areas, and no injuries were reported.

On Saturday, the Israeli incursion into Gaza escalated with an airstrike targeting a school compound, leading to at least 90 fatalities, according to the Gaza Civil Emergency Service. Israel has contested this casualty figure, labeling it as exaggerated. Meanwhile, Hamas has expressed uncertainty about engaging in new ceasefire negotiations on Sunday, as reported by Reuters.

Oil prices were also driven higher by positive economic data from China and the United States (US). China's consumer prices rose faster than expected in July. China's Consumer Price Index (CPI) rose 0.5% year-on-year in July, exceeding the expected 0.3% and previous 0.2% readings. Meanwhile, the monthly index also increased 0.5%, swinging from the previous decline of 0.2%.

Additionally, US Initial Jobless Claims dropped to 233,000 for the week ending August 2, coming in under the market expectation of 240,000. This decline follows an upwardly revised figure of 250,000 for the previous week, which was the highest in a year.

Expectations for a potential interest rate cut by the Federal Reserve (Fed) in September could potentially provide support for the Oil demand, as lower borrowing cost will support the economic activities in the US. The CME FedWatch Tool indicates a 51.5% chance of a 25-basis point rate cut at the September meeting, a significant increase from the 26.0% probability reported a week ago.