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WTI slips below key moving averages as US Iran tensions ease
WTI was around $77.90, down nearly 4% on the day after a 9% drop the prior session, and a daily close below the 200-day SMA near $74.78 could pull it toward $67 to $65.
WTI crude extended its decline on Tuesday as hostilities between the United States and Iran showed signs of easing, which reduced concerns about security risks around the Strait of Hormuz. FXStreet said the geopolitical premium built into oil prices was partially unwound, even as Donald Trump urged Iran to make a deal while warning the US would return to action if no agreement is reached.
At the time of writing, WTI traded around $77.90, down nearly 4% on the day, after falling 9% the previous session. FXStreet noted that Oman has also proposed voluntary fees related to joint management of the Strait of Hormuz, under which Iran would not have sole control over the shipping route.
The move has left WTI unable to hold above the 100-day simple moving average at $88.19, and it has now slipped below the 50-day SMA at $81.26, which FXStreet said points to a bearish near-term bias. Momentum signals were described as mixed, with the RSI falling back below the neutral 50 level.
On the downside, FXStreet identified the 200-day SMA at $74.78 as key support, warning that a decisive daily close below it could open the door to a deeper decline toward the pre-war zone of $67 to $65. Resistance was cited at the 50-day SMA near $81.26, with further upside toward the 100-day SMA around $88.19 and then the psychological $90 level if that barrier holds.
Latest closeWTI crude $81.92 ▼8.3%