Crude oil prices were relatively steady this morning, but with a negative bias. Front-month WTI fell back towards $58.50 to hit its lowest level since last Monday. After a brief break above key resistance around $61.30 in the middle of last week, front-month WTI has dropped back.
But it has not yet fallen enough to take it back below the upper resistance line of the downtrend, which had been building since the summer. That is the next target as far as the bears are concerned, as they position themselves to take advantage of the longstanding fundamental drivers of plentiful supply and slowing global demand growth.
Source: TN Trader
The Western perception that the horrific outbreak of regime-backed violence against protestors in Iran has now ceased has been partly responsible for the drop in oil prices.
It’s certainly something for which the Trump administration wishes, as the president’s threat of military intervention should the state violence persist was obviously not something that had been planned out fully. Traders will continue to monitor developments across Persia and the Middle East alongside tariff-related risks that could weigh on global growth expectations.
