WTI Oil Nears $69 as Ceasefire Eases Middle East Concerns: Key Trends
WTI crude oil held steady around $69 on Tuesday after tumbling 3% on Monday.
The decline followed news of a potential ceasefire between Israel and Hezbollah, reducing Middle East supply disruptions. Israeli PM Benjamin Netanyahu has agreed “in principle” to the terms, according to Quantum Commodity Intelligence, with talks ongoing this week.
While the truce is close, it’s not clear if Hezbollah will actually sign off on the deal, so geopolitical risk remains. Analysts say the ongoing Russia/Ukraine tensions and Iran’s nuclear expansion are providing some support to oil prices, even as the ceasefire news is weighing on the market.
Oil Faces Headwinds from Stronger Dollar
Another factor weighing on crude is the strengthening US dollar, which rose after President-elect Donald Trump threatened tariffs on Canada, Mexico and China. A strong dollar makes oil more expensive for holders of other currencies and reduces demand.
Despite that, the market is still cautious ahead of the OPEC meeting on December 1st where production strategies will be discussed. Nanhua Futures analysts say while fundamentals are stable, OPEC’s direction will be key for short term price movement.
Technical Analysis: A Bullish Reversal in Sight?
WTI Crude Oil is trading at $69.15, up 0.51% for the day, with technical indicators suggesting a potential buying opportunity. A hammer candlestick formed near the $68.78 support area, signaling strong rejection of lower prices. This was followed by a bullish engulfing pattern, further indicating buyer interest.
Resistance levels are seen at $69.66, aligned with the 50-day EMA at $69.49, followed by $70.40 and $71.47. Meanwhile, a breakdown below $68.78 could expose oil to further downside risks, with supports at $67.73 and $66.88. The Relative Strength Index (RSI), currently at 45.15, reflects mild bearish momentum but shows signs of improvement.
Key Insights:
Middle East Developments: Ceasefire talks ease supply concerns but lack firm Hezbollah agreement.
Geopolitical Tensions: Russia-Ukraine conflict and Iran’s nuclear moves keep prices supported.
Technical Trends: Hammer and bullish engulfing candles signal reversal potential near $68.78 support.c
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