The price of WTI crude oil futures are settling down $2.59 or -2.94% at $85.49.
Looking at the daily chart the high from August reached up to $84.85. That is the next target on the downside. The low price today could only get to $85.40. Get below that level and traders will look toward the swing area between $82.35 and $83.32.
Crude oil fell but remained above support on the daily chart
- Oil prices experienced a significant decline due to the absence of an escalation or invasion in Israel and Gaza, which reduced the geopolitical risk premium.
- WTI reached lows of USD 85.40/bbl partly in response to reports of potential further hostage releases.
- US President Biden confirmed the easing of sanctions on Venezuela, but this is not expected to have a substantial immediate impact on global oil supply, with analysts predicting only a modest increase of a few hundred thousand barrels.