- Tensions in energy markets decline after the attacks between Iran and Israel.
- Fear of a war escalation in the Middle East recedes after Iran's blink.
- US supplies continue to exceed demand, limiting supply contraction.
Iran eased off the accelerator on Monday, declaring that it will take no further retaliation against Israel, following a back-and-forth spat between the two countries that sent global energy markets soaring in recent weeks as fears of an escalation of the conflict in the East grew. Next. Iran's current de-escalation has given a respite to oil markets, and prices have fallen as market tensions eased.
US West Texas Intermediate (WTI) crude oil is exploring the lower part of the $82.00 zone, after falling from a short-term high near $87.00. Barrels of US crude oil have fallen 6%, but are still up almost 15% in 2024.
Late Tuesday, the American Petroleum Institute (API) will release the latest weekly count of crude oil barrels. US crude oil reserves continue to defy gravity despite widespread expectations of tight supply constraints in energy markets. API has been showing an upward trend for some time.
WTI Crude Oil Technical Outlook
Geopolitical tensions continue to expose crude oil prices to upward volatility, but prices have continued to decline in the near term. The intraday action is on the bearish side of the 200 hourly EMA near $83.30. The $81.00 area continues to act as a provisional floor for price action, with bidders unable to reclaim the territory above $82.00.
Despite falling for three of the last 12 consecutive days, US crude oil is still trading above the 200-day EMA near $79.00. If the pullback continues, WTI will challenge the Q1 congestion zone around the $78.00 level.
WTI hourly chart
WTI daily chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
