WTI jumps to 3-week highs as US-Iran tensions flare up

  • Rallied hard on escalating Middle-East tensions after US drone downed.
  • Supported by the drop in US crude stockpiles, OPEC meet agreement, USD declines.
  • Focus on US-Iran geopolitical tensions and US data for fresh directives.

WTI (futures on Nymex) extended its bullish momentum and went on to hit fresh three-week highs at 55.86 in early Europe, now consolidating the latest uptick around 55.50 levels.

The latest move higher was mainly prompted by the latest reports that fanned the ongoing US-Iran conflict, citing that a US spy-drone was downed by Iran. Both sides confirmed the reports while the Iranian Islamic Revolutionary Guard Corps (IRGC) Commander said that downing of the US drone sends a clear message to Washington. Tensions have been rising between the US and Iran and therefore, in the Middle East after last week’s attacks on two tankers near the Strait of Hormuz.

Moreover, the sentiment around the black gold remains underpinned after the OPEC and other producer agreed on a date to meet and discuss the oil output cuts extensions. Additionally, a bigger-than-expected drop in the US crude inventories also offers fresh impetus to oil bulls. The Energy Information Administration (EIA) said on Wednesday that the US crude stocks fell by 3.1 million barrels last week, compared with the expectations for a draw of 1.1 million barrels.

Furthermore, the oil traders cheer the ongoing slump in the US dollar across its main peers after the US Treasury yields got sold-off into an overtly dovish FOMC. The Fed left the interest rates unchanged but pointed towards rate cuts in the coming months. A weaker greenback makes the USD-denominated oil cheaper for the holders in foreign currencies.

Markets now remain glued to the development around the US-Iran conflict while the US macro news will be closely eyed for fresh USD trades and its eventual impact on the US oil.

WTI Technical Levels


Today last price 55.46
Today Daily Change 1.07
Today Daily Change % 1.97
Today daily open 54.39
Daily SMA20 54.67
Daily SMA50 59.79
Daily SMA100 58.81
Daily SMA200 58.55
Previous Daily High 54.65
Previous Daily Low 53.52
Previous Weekly High 54.94
Previous Weekly Low 50.94
Previous Monthly High 63.97
Previous Monthly Low 53.13
Daily Fibonacci 38.2% 54.22
Daily Fibonacci 61.8% 53.95
Daily Pivot Point S1 53.72
Daily Pivot Point S2 53.06
Daily Pivot Point S3 52.59
Daily Pivot Point R1 54.85
Daily Pivot Point R2 55.32
Daily Pivot Point R3 55.98





Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD bounces off the lows as the market mood improves

EUR/USD is bouncing toward 1.18, recovering from the fall triggered by upbeat US jobs figures and escalating Sino-American tensions. Investors are eyeing the fiscal stimulus impasse in Washington after Trump's executive order and the market mood has somewhat improved.


GBP/USD recovering toward 1.31 as the dollar weakens

GBP/USD has recovered toward 1.31 as the dollar pares early gains amid the impasse in Washington over new fiscal stimulus. A survey showing that a third of UK employers may lay off workers is weighing on the pound.


XAU/USD retreats to $2030 after making a run to $2050

Gold prices spiked to the upside after the beginning of the American session but then pulled back erasing gains. XAU/USD jumped to $2049.70/oz, and as of writing, it trades at $2033, practically at the same level it closed on Friday.

Gold News

It is time for King Bitcoin

The crypto board starts the week stuck on critical levels. The war for dominance has been favorable to Ethereum for weeks, and the graphics seem to indicate that it's now Bitcoin's turn to win a few battles.

Read more

WTI: $42.30 is the level to beat for the bulls

WTI (futures on Nymex) climbed nearly 1.50% in a bid to test the $42 mark on Monday, in the wake of the upbeat outlook painted by Saudi Aramco’s CEO Nasser and expectations that Iraq will cut output in August.

Oil News