WTI Crude Oil trades at $85.70, capped by diplomatic optimism regarding US-Iran relations and persistent technical resistance at the 200-day SMA of $86.42.
WTI rebounded from $83.00 to around $85.70 but trades below the 200-day SMA at $86.42 and the 38.2% Fibonacci level at $89.97, with RSI near 35 and a negative MACD, keeping the bearish bias intact. Optimism over a potential US-Iran peace deal, echoed by Rubio on Tuesday, caps prices, while a larger-than-expected US inventory draw and Middle East tanker attacks limit downside.
WTI Crude Oil holds near $85.70 on Wednesday, struggling to gain momentum despite a recent rebound from $83.00. While a larger-than-expected US inventory draw provides some support, optimism regarding potential US-Iran peace negotiations continues to cap upside potential. Technical indicators remain bearish, with the price trading below the 200-day SMA of $86.42.
WTI trades around $85.70, just under the 200-day moving average at $86.42. Resistance sits at $89.97, while supports are at $85.60, $81.23, $75.01 and $67.08.
Progress toward a US-Iran peace deal would cap or push prices lower, since it removes the geopolitical risk premium. A breakdown below $85.60 could expose $81.23. Conversely, renewed attacks on Middle East oil infrastructure or a break above $89.97 would favor the upside.