WTI Crude Oil goes red for Monday, heading for $85 per barrel – Crypto News – Crypto News
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WTI drops below $90.00 as supply cuts-infused optimization fades, US CPI hogs limelight WTI drops below $90.00 as supply cuts-infused optimization fades, US CPI hogs limelight

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WTI Crude Oil goes red for Monday, heading for $85 per barrel – Crypto News

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  • WTI sees a relief pullback from recent highs as investor fears over geopolitical tensions ease.
  • Markets are likely to see limited downside as global supply remains constrained.
  • Chinese demand ate through more reserves than expected recently.

West Texas Intermediary (WTI) Crude Oil prices are seeing declines in the early trading week as market fears over Middle East geopolitical tensions spilling over and negatively impacting Crude Oil supply are beginning to subside.

WTI Crude barrels kicked off Monday testing the $88.00 handle in the early pre-US market session before barrel bids tumbled, taking WTI down into $85.00.

Oil: Geopolitical risks have faded as soon as one month after the start of a conflict – TDS

Crude Oil markets easing back from Middle East conflict concerns

WTI prices are falling back as markets recover from their Gaza Strip conflict shock as diplomatic efforts underway in the Israel-Hamas war see a decreased likelihood of geopolitical turmoil spilling over and rattling crude supply lines in the ME.

Energy investors have been particularly concerned about the Strait of Hormuz in recent weeks, overly concerned that any geopolitical spillover would impact the region, which is a significant chokepoint for Crude Oil supply, with a fifth of all global production passing through the waterway.

Despite tensions in Crude markets easing, the outlook for barrel prices still remains elevated, with global supply continuing to undershoot demand, especially after a surprise drawdown in crude inventories from an unexpected uptick in Chinese demand for Crude Oil, despite the floundering of China’s domestic economy.

WTI Technical Outlook

WTI Crude Oil prices are falling back into the 50-day Simple Moving Average (SMA) near $85.50, slipping from the last swing high into $89.64.

Crude Oil remains well-bid in the medium-term with barrels still bidding north of the 200-day SMA near $78.00, and the immediate barrier for downside momentum will be early October’s swing low into $80.63, with the $80.0 major psychological handle nearby.

WTI Daily Chart, 

WTI Technical Levels

 

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