FX.co ★ CL/Crude Oil

During early European trading hours on Monday, the US benchmark for crude oil, West Texas Intermediate (WTI), is trading at about $88.45. The Kuwaiti military's claims of a drone and missile strike have drawn some purchasers to the WTI price. The result of the US-Iran peace pact and Middle East developments will be eagerly watched by traders. Following the sounding of air raid sirens and the sending of emergency alerts across the country, Kuwait's military forces reportedly told The Guardian on Monday that the nation's air defence systems were intercepting hostile missiles and drone assaults. US Central Command (Centcom) announced that it had carried out "strikes on Iranian radar and command and control sites for drones" over the weekend, shortly after Kuwait reported an attack. On Sirik Island in southern Iran, the Islamic Revolutionary Guards Corps (IRGC) of Iran claimed to have attacked a US airbase. Growing tensions in the Middle East could cause supply disruptions and hike the price of WTI in the near future. Later on Tuesday, the American Petroleum Institute (API) report is anticipated to be made public. Stronger demand is indicated by a larger-than-expected decline in crude oil inventory, which might raise the price of WTI; on the other hand, either surplus supply or weaker demand is indicated by a larger-than-expected build, which could lower the price of WTI. The lower Bollinger Band adds intermediate demand below spot, and WTI US Oil maintains a positive near-term tone in the daily chart while remaining above the 100-day simple moving average (SMA). Initial resistance on the upswing could be found close to the high of $93.57 on May 26. The Bollinger middle band, at around $95.00, comes next, followed by the psychological level, at roughly $100.00, and the upper Bollinger Band, at roughly $104.76. The current area around the lower Bollinger Band at $85.20 offers immediate support on the downside, while the 100-day SMA at $82.56 serves as a more substantial bullish line in the sand. A persistent breach below that range would considerably undermine the dominant positive tendency.