WTI bounces off daily low, keeps the red around $85.00 amid easing geopolitical tensions

WTI kicks off the new week on a weaker tone amid easing geopolitical tensions in the Middle East.
The post-NFP USD buying exerts additional pressure on the commodity and contributes to the fall.
Expectations for a fall in fuel supply from Russia and signs of improving demand help limit losses.

Haresh Menghani FXStreet

West Texas Intermediate (WTI) US crude Oil prices open with a bearish gap on the first day of a new week and retreat further from over a five-month peak touched on Friday. The commodity, however, trims a part of Asian session losses and currently trades around the $85.00 psychological mark, still in the red for the second successive day.

Israel withdrew more soldiers from southern Gaza and committed to fresh talks on a potential ceasefire with Hamas, easing concerns about the risk of a further escalation of conflicts and crude supply disruptions from the Middle East. This, along with the upbeat US NFP-inspired US Dollar (USD) strength, prompts some profit-taking around Crude Oil prices, especially after the recent blowout rally witnessed over the past two months or so.

Investors, meanwhile, remain concerned about the Ukrainian drone attacks on refineries in Russia. Apart from this, the OPEC+ clampdown on some countries to increase compliance with output cuts, along with a strong demand outlook, acts as a tailwind for Crude Oil prices. Positive economic data from China is fueling the optimism – the world's top importer – and supports prospects for the emergence of some dip-buying around crude Oil prices.

The aforementioned fundamental backdrop makes it prudent to wait for strong follow-through selling before confirming that the black liquid has topped out in the near term and before positioning for any meaningful corrective decline. Even from a technical perspective, the recent breakout through the previous YTD peak, around the $83.55 area favours bullish traders amid positive oscillators on the daily chart, which have now eased from overbought territory.

WTI US OIL

Overview
Today last price	85.04
Today Daily Change	-1.14
Today Daily Change %	-1.32
Today daily open	86.18

Trends
Daily SMA20	81.72
Daily SMA50	78.83
Daily SMA100	76.15
Daily SMA200	79.03

Levels
Previous Daily High	87.12
Previous Daily Low	85.88
Previous Weekly High	87.12
Previous Weekly Low	82.26
Previous Monthly High	83.05
Previous Monthly Low	76.5
Daily Fibonacci 38.2%	86.35
Daily Fibonacci 61.8%	86.65
Daily Pivot Point S1	85.66
Daily Pivot Point S2	85.15
Daily Pivot Point S3	84.42
Daily Pivot Point R1	86.91
Daily Pivot Point R2	87.64
Daily Pivot Point R3	88.16

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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