WTI crude oil trades below $85.00 as geopolitical risk premiums fade amid hopes for a US-Iran deal and Democratic gains in the US midterm elections.
WTI is down 1.5% below $85.00 on Tuesday, near its 10-week low of $84.25, as hopes of a US-Iran deal reduce the geopolitical risk premium. Trump said fresh military strikes are 'highly unlikely' and the midterm outcome raised deal expectations. Technicals confirm bearish momentum: price is below the 20-day EMA at $93.36 and broke the October 6 low at $86.32, with the RSI at 34 still pointing down.
WTI crude oil prices fell 1.5% to trade near $84.81 on Tuesday, approaching the 10-week low of $84.25. The decline follows President Trump's comments that military strikes on Iran are 'highly unlikely' and increased expectations for a diplomatic deal following the US midterm election results.
WTI dropped 1.5% below $85.00 as investors priced out geopolitical risk after President Trump said strikes on Iran are 'highly unlikely' if talks keep progressing, and after the midterm results raised hopes of a US-Iran deal.
Per the chart analysis, key support levels are the August 28 high at $83.11 and the August 26 low at $79.28, with resistance at $86.32 and $90.00.