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WTI Crude Dips to $85.40 Amid Iran-Israel Tensions, Market Eyes $90 Range

WTI Crude Oil is marginally down today, trading at $85.41, reflecting a minor decrease of 0.09%. Following the recent altercation where Iran targeted Israel with over 300 missiles and drones, crude oil prices experienced a slight decline.

WTI Crude Price Chart - Source: Tradingview

Brent futures dropped by $0.23 to $90.22, while WTI futures decreased by $0.29 to $85.37, as initial risk premiums were adjusted due to the limited damage reported.

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Strategic Reserves and OPEC’s Role:

Despite the attack’s minimal physical damage, the broader potential for regional conflict poses a risk to oil traffic in the Middle East. Iran’s significant crude production capabilities, exceeding 3 million barrels per day, could face disruptions if geopolitical tensions escalate.

However, OPEC’s spare capacity of over 5 million barrels per day and potential U.S. strategic petroleum reserves releases could mitigate substantial supply disruptions.

Market Outlook and Price Implications:

Crude oil markets had previously rallied in anticipation of the conflict, with prices reaching their highest since October. While the immediate supply impact has been minimal, prolonged regional tensions could keep prices within the $85-$90 range.

Analysts suggest that any significant escalation affecting critical shipping routes like the Strait of Hormuz could drive prices significantly higher, potentially exceeding $100 per barrel if the conflict intensifies.

Overall, while the current market has absorbed the initial shock, the ongoing geopolitical uncertainty will continue to influence WTI and Brent oil prices, requiring investors to stay vigilant to shifts in the regional stability and global oil supply dynamics.

WTI Crude Oil Price Forecast: Technical Outlook

WTI Crude Oil is marginally down today, trading at $85.41, reflecting a minor decrease of 0.09%. On the four-hour chart, the pivot point for WTI is established at $84.84, with the price hovering slightly above this mark, suggesting initial stability.

Looking upward, the immediate resistance is at $86.32. Further ceilings are mapped at $87.50 and $88.73, which could restrict advances. On the downside, support begins firmly at $83.48.

Subsequent support levels are noted at $82.20 and $80.80, which might provide a floor if downward pressure intensifies.Technical indicators include the Relative Strength Index (RSI) at 46, indicating a neutral market momentum.

WTI Crude Price Chart - Source: Tradingview

The 50-day Exponential Moving Average (EMA), currently at $85.40, virtually aligns with today’s price, supporting the oil’s stability near this level. Notably, a triple bottom pattern has formed around the $84.85 area, reinforced by the 50 EMA and an upward trendline, suggesting a robust support zone.

In conclusion, WTI Crude Oil exhibits bullish potential above the $84.84 pivot. However, a breach below this threshold could trigger a significant sell-off, emphasizing the importance of the noted support levels in the near term.

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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