FX.co ★ CL/Crude Oil

Oil prices exhibit their biggest weekly fall in months, owing to the overwhelming victory for the Democrats in the US midterm elections and rising expectations of an end to the war in Iran. US crude oil WTI has fallen 14.25% year to date to $87.50, after finding support at the 200-day Simple Moving Average (SMA) of $86.00. The price of oil plunged on Wednesday, with the defeat of US President Donald Trump in the midterm elections pointing to disapproval of the policies of Republicans, mostly regarding the war in Iran and the oil crisis resulting from it. In an interview with the Financial Times, Trump said he has no reason to regret the move toward Iran, but added that the US has no immediate plans to renew hostilities. In his interview with the Financial Times on Wednesday, Vice President JD Vance stated that the war waged against Iran is the primary cause of the outcome of the elections. This news has led to the assumption that the government will try to end the war soon. On Thursday, Iran's Islamic Republican Guard Corps (IRGC) reported that two Oil tankers were on fire while they tried to cross the Strait of Hormuz using an unauthorized route. WTI US Oil stands at $88.64, trading just above the 200-day simple moving average (SMA) with deteriorating momentum. The daily chart shows the RSI has declined to 36.5. At the same time, the MACD line crosses under the Signal line, and the histogram grows more bearish, confirming that the current consolidation phase is gathering pace even as the overall positive trend context remains intact. A breakout below the indicated $86.00 level would be considered a trend reversal, putting the late August lows around $79.30 and the August 3 lows around $73.50 on the radar. To the upside, the nearest resistance is the former support zone of $94.50 (November 2 lows), before last week's highs above $103.67.