WTI Oil Prices Hold Near Four-Week Low Amid Easing Supply Concerns
West Texas Intermediate (WTI) crude oil prices faced a second day of declines on Monday, hovering near the $89.00 mark during early European trading. This follows a four-week low reached last Friday, as supply concerns ease but geopolitical tensions continue to provide some support.
The G7's decision to release 100 million barrels of crude and fuel products from emergency reserves, combined with increased Middle Eastern crude exports, has put downward pressure on prices. However, ongoing tensions in the Strait of Hormuz and the Russia-Ukraine conflict are keeping bears cautious about further declines.
From a technical standpoint, WTI needs to stay below the 38.2% Fibonacci retracement of its July-September upswing to signal further losses towards sub-$88.00 levels. Additional declines could attract buyers near the $85.00-$84.50 support zone, which combines the 50% retracement level and the 100-day Simple Moving Average (SMA).
The Moving Average Convergence Divergence (MACD) remains below zero with a negative reading of -0.93, while the Relative Strength Index (RSI) hovers near 47, suggesting a moderating but still supportive trend. A decisive break below $84.50 could lead to further declines toward $80.73 and $74.84, with broader support at $67.33. On the upside, a break above $94.13 could target the cycle high near $102.40.