FxNews—WTI crude oil prices were steady at approximately $67.9 a barrel on Tuesday, following a sharp drop of more than 6% the day before—the biggest fall in two years, settling at the lowest point in four weeks.
The 4-hour price chart below demonstrates the price, support, and resistance levels.
Oil Prices Drop as Middle East Tensions Ease
This drop came after news that Israel had launched retaliatory attacks on military targets in Iran last Saturday, steering clear of oil and nuclear sites.
As tensions in the Middle East began to calm, with Israeli Prime Minister Benjamin Netanyahu hinting at a possible short-term ceasefire in Gaza for some hostage releases, the oil market’s attention shifted away from geopolitical risks.
Oil Markets Watch US Reports and OPEC Output Rise
Instead, traders are now more focused on weaker market fundamentals, including slow demand growth from China and OPEC’s expected increase in oil production.
Additionally, traders are watching important U.S. economic reports this week, which could influence future monetary policies and the forthcoming U.S. election.
