FX.co ★ CL/Crude Oil

Crude Oil Uncertainty in the Middle East continues to be a major motivator for USOIL. While extending the US-Iran ceasefire indefinitely, President Trump has maintained the naval blockade of Iranian ports. The position of the Strait of Hormuz is currently quite uncertain because Iran will not return to the negotiating table until the embargo is lifted. The market is still paying a risk premium because of the continuous danger of production shutdowns and supply interruptions (as the strait handles over 20% of the world's seaborne oil), but a diplomatic solution might immediately improve the situation. Fortunately, domestic production and stockpile levels in the United States provide at least some protection. After rising from the $84–$85 support area where many investors had been buying in, WTI oil is currently trading at about $90.01, although it is still trapped in an unbroken downward-sloping channel. The price is having difficulty staying above the 50-day EMA, which is currently around $92.00. This puts a lid on everything, indicating that bearish sentiment is still in charge. The RSI is gradually moving back near 50, indicating that momentum is beginning to pick up a little, and the last few candles have showed us higher lows, which always makes for a respectable short-term rebound. However, the price is still stuck in that crucial range of $91.10 to $92.00, and sellers will probably continue to control the market as long as that continues. If it doesn't break through there, WTI might be forced back down to $85.30; on the other hand, a clear break above $92.00 might start the party and drive prices up to $95.30.