Oil prices remain subdued near two-month lows amid Middle East tensions and upcoming US inflation data.
West Texas Intermediate crude trades near $87.50, nearly flat for the day, as renewed US-Iran hostilities and the Strait of Hormuz closure support prices. The commodity hovers above a two-month low reached Tuesday, with traders monitoring Middle East developments and US consumer inflation figures due later today.
WTI remains above its 100-day Simple Moving Average at $84.72, suggesting a still-constructive near-term outlook despite recent declines. However, weak momentum indicators, including a Relative Strength Index near 42 and a negative MACD, signal limited upside potential without fresh buying interest.
A sustained break below the 100-day SMA could accelerate losses toward $79.00 or lower, while resistance near recent highs caps near-term gains. The psychological $100 mark remains a distant target amid cautious sentiment.