FX.co ★ CL/Crude Oil

Crude oil prices are holding steady at around $68.80 per barrel during the Asian trading session on Tuesday. While the market has remained relatively stable, global oil prices have been muted due to a balancing act between rising supply expectations and sluggish demand growth. These factors are offsetting concerns about potential supply disruptions, which have become more prominent amid the ongoing conflict in the Middle East. Middle East Conflict and Its Effect on Supply Risks: Reuters recently reported that ANZ Research has highlighted the rising probability of Iran, a major oil producer and member of the Organization of the Petroleum Exporting Countries (OPEC), becoming directly involved in the conflict. Given Iran's substantial role in global oil supply, any disruption in its production or export capabilities could have a profound impact on global oil prices. Traders are closely monitoring the situation, as heightened tensions could lead to volatility in the oil markets. Technical Analysis of WTI Crude Oil: Crude oil prices have followed a downward-sloping channel, signaling a well-established bearish trend. This ongoing decline suggests that the market could experience further losses if the negative momentum continues. If the price falls below the $67.80 mark, it could trigger additional selling pressure, potentially pushing WTI oil to the $65.00 psychological level. A drop below this level could lead to further declines toward the $64.75 region, which represents the lowest level since May 2023.

Despite the overall bearish sentiment, the Relative Strength Index (RSI) indicators are showing signs of strength, suggesting that there may be potential for a bullish reversal in the near term. While the bearish trend remains dominant, any positive shifts in market sentiment or a reduction in geopolitical tensions could spark a recovery. However, for this to happen, WTI oil prices would need to break through key resistance levels.