West Texas Intermediate (WTI), the primary benchmark for US crude oil, registered a trading price around $82.20 on Tuesday. This dip in crude prices came amid advancing ceasefire negotiations in Cairo between Israel and Hamas, easing concerns over a potential escalation in Middle East conflicts.

According to a recent report by the Guardian, the ceasefire discussions may lead to substantial concessions from Israel, motivated by international backlash regarding the humanitarian impact of its military actions in Gaza.

A successful ceasefire could reduce the geopolitical risk currently factored into oil prices. In the U.S., recent inflation figures and a firm stance from the Federal Reserve on interest rates have tempered expectations for rate cuts, subsequently limiting potential gains in oil prices.

With the Federal Reserve likely to maintain its rate between 5.25% and 5.50%, the focus shifts to Fed Chair Jerome Powell’s upcoming press conference for further cues on interest rate policies.

The persisting high-interest rate environment could strengthen the U.S. Dollar, potentially placing downward pressure on USD-denominated oil prices.

Key economic indicators to watch include the Chinese Caixin Manufacturing PMI, Eurozone inflation and GDP figures, and the American Petroleum Institute’s (API) Weekly Crude Oil Stock report.

WTI Crude Oil Price Forecast: Technical Outlook

WTI Crude Oil is currently priced at $81.89, reflecting a decrease of 0.97%. The market is positioned just below its pivot point at $82.27, indicating potential downward pressure.

Immediate support levels are at $80.95, $79.73, and $78.63, which may halt further declines if tested. Conversely, resistance is found at $84.16, $85.61, and $87.13, challenging any upward price movements.

The Relative Strength Index (RSI) stands at 40, suggesting that the market may be nearing oversold conditions, while the 50-Day Exponential Moving Average (EMA) is at $83.04, above the current price, signalling potential resistance.

Conclusion:

The market exhibits bearish signals below $82.27. However, surpassing this pivot could shift momentum towards a bullish bias. Trading Insight: Monitoring the $82.27 level will be critical for traders to gauge future price direction in WTI Crude Oil.