WTI crude oil price dips near four-week low amid easing supply concerns
The price of West Texas Intermediate (WTI) crude oil edged lower for the second consecutive day on Monday, hovering around $89.00. This decline brings the commodity close to a four-week low reached last Friday, as supply concerns ease but geopolitical tensions persist.
The G7's decision to release 100 million barrels of crude and fuel from emergency reserves, along with increased Middle Eastern crude exports, has put downward pressure on oil prices. However, ongoing geopolitical uncertainties, such as the US-Iran standoff and the Russia-Ukraine war, are preventing a more significant drop.
Technically, WTI needs to break below the 38.2% Fibonacci retracement of the July-September upswing to confirm further losses towards sub-$88.00 levels. A decline below $84.50 could open the door to deeper losses, targeting support levels around $80.73 and $74.84. Conversely, a break higher would aim for resistance at $94.13, with further gains potentially reaching $102.40.
The Moving Average Convergence Divergence (MACD) remains negative at -0.93, while the Relative Strength Index (RSI) hovers near a neutral 47, suggesting a moderating but still supportive trend rather than a decisive reversal.