WTI crude oil climbs back above $90 as geopolitical tensions in the Persian Gulf outweigh political shifts in Washington, keeping the commodity's bullish structure intact.
WTI recovered to around $90.15 on Thursday after Wednesday's sell-off, as traders doubt the US midterm results will quickly end the eight-month Iran conflict. At least five vessel incidents in the Persian Gulf since Sunday and Trump's warning that Iran needs US 'approval' for its nuclear program keep supply-risk premium alive, while analysts see the sell-off as possibly overdone.
Traders are reconsidering whether the Democrats' midterm sweep will actually bring a swift end to the Iran war, and ongoing Persian Gulf vessel incidents keep supply risks in the price.
Support sits at $88.30 and the 100-day SMA around $86.25; resistance is at the Bollinger middle band at $96.75 and the upper band near $105.15.
WTI crude oil prices recovered to $90.15 on Thursday as traders tempered expectations that US midterm election results would lead to a swift resolution of the Iran conflict. Despite a Democratic sweep of Congress, persistent vessel incidents in the Persian Gulf and ongoing nuclear rhetoric from the White House have kept a supply-risk premium in the market, prompting analysts to view the recent sell-off as overdone.
Traders are reconsidering whether the Democrats' midterm sweep will actually bring a swift end to the Iran war, and ongoing Persian Gulf vessel incidents keep supply risks in the price.
Support sits at $88.30 and the 100-day SMA around $86.25; resistance is at the Bollinger middle band at $96.75 and the upper band near $105.15.