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WTI holds near $84.00 as US and Iran reject MoU extension
Traders are watching the API weekly crude inventory report for clues on whether draws support prices or builds pressure them.
WTI, the US crude benchmark, was trading around $84.00 in early Asian trading on Tuesday, steadying as markets weighed fresh developments around Middle East oil supply risk. FXStreet said the US and Iran both ruled out extending a memorandum of understanding signed in June to end the conflict.
The outlet noted that Bloomberg reported US President Donald Trump said he is not looking to renew the expiring agreement with Tehran, pointing to US leverage that he ties to a naval blockade. Iran’s Foreign Ministry spokesman Esmail Baghaei said an agreement has been difficult because of security complexities and that the US would need to remove its blockade.
Ahead of the American Petroleum Institute’s weekly crude oil report later Tuesday, FXStreet said a larger-than-expected inventory draw could support WTI, while a bigger build than estimated would signal weaker demand or excess supply. TD Securities also said crude positioning still leaves the market vulnerable to a short covering rally if risk sentiment or supply concerns shift.
On the technical side, FXStreet reported WTI retains a near-term bearish bias while trading below the 100-day simple moving average, with the RSI(14) at 56.03 indicating modest positive momentum. The report also said price remains above the Bollinger Bands 20-day SMA middle band, suggesting some underlying demand despite overhead resistance.
Latest closeWTI crude $82.40 ▲1.4%