WTI Oil Prices Weighed Down by Geopolitics Amid Pipeline Recovery
The price of West Texas Intermediate (WTI) crude oil has been affected by a recent surge in recovery flows through the Saudi East-West pipeline. However, this boost is countered by ongoing geopolitical tensions with Iran, which maintains a premium on crude prices.
President Donald Trump's rejection of a seven-day peace proposal from Iran has diminished hopes for a diplomatic resolution to the US-Iran standoff. Trump has also indicated that he expects renewed combat operations and bombing against Iran following the November midterm elections.
From a technical perspective, WTI oil prices have failed to break above their 200-period Simple Moving Average (SMA) on the 4-hour chart, which favors bearish traders. The Moving Average Convergence Divergence (MACD) remains below zero with a slightly negative reading, while the Relative Strength Index (RSI) is around 38, suggesting lingering downside pressure.
A sustained break lower in WTI prices would expose deeper structural supports at the 61.8% Fibonacci retracement at $84.37 and then the 78.6% level at $79.56, ahead of the cycle floor near $73.44.