WTI: Crude oil drops amid ceasefire reportsCrude oil prices tumbled on the back of reports of a ceasefire between Israel and Lebanon. The news also sent gold prices lower. If confirmed, this will remove some of the geopolitical premium in oil prices, which had provided support for oil since Israel’s war started.
Today's drop means, WTI has held below key resistance around $71.50 - $72.50 range. While below here, any short-term recoveries like we have seen last week would be against the underlying trend.
Short-term support around $69.29 to $70.00 was being eroded at the time of writing. A close below here could pave the way for a potential retest of recent lows around $67.00, below which we don't have much in the way of support until $65.00.
By Fawad Razaqzada, market analyst with FOREX.com
