WTI crude oil hit its lowest level since late August, trading below $84.00 as diplomatic hopes for a US-Iran resolution pressured prices, while technical indicators suggest sellers remain in control.
WTI slipped below $84.00 on Tuesday to its lowest since late August, breaking under the key 200-day SMA and the 50% Fibonacci retracement at $85.48. Trump's statement that a US-Iran peace deal has positive momentum and renewed strikes are unlikely reduces the geopolitical risk premium, with next supports at $81.11 and $74.89. Iran's dismissal of talks as fake news keeps some risk of a rebound.
The article notes a weak US Dollar lending some support to oil, and traders are awaiting US consumer inflation figures for direction. This is a passing, mixed mention without a decisive fact for the currency itself.
WTI crude oil prices fell for the second consecutive day, dropping below $84.00 as optimism regarding a potential US-Iran peace deal reduced geopolitical risk premiums. President Donald Trump stated that the conflict is effectively over, though Iran's Supreme National Security Council dismissed these reports as fake news. Technically, the commodity broke below the 200-day SMA and the 50% Fibonacci retracement level of $85.48, signaling further bearish momentum.
Hopes of a US-Iran peace deal, reinforced by President Trump saying the conflict is effectively over and renewed strikes are unlikely, are weighing on prices, pushing WTI below $84.00 to its lowest level since late August.
Below the broken $85.48 level, supports sit at the 61.8% retracement near $81.11, then around $74.89 and $66.96; on the upside, resistance is at $85.48, the 200-day SMA at $86.31, and further at $89.85 and $95.26.