Crude Oil reversed previous gains and resumed its decline on Monday as news reports indicated progress in US-Iran talks.
The US benchmark West Texas Intermediate (WTI) barrel has dropped about $2.5 from session highs and is wavering around $75.00 at the time of writing, Negotiators from Qatar and Pakistan said in a joint statement on Monday that Washington and Tehran had committed to a roadmap to end the conflict “on all fronts” within 60 days and reopen the Strait of Hormuz
The mediators also affirmed that a communication line has been opened to avoid incidents and miscommunications between the rival countries. This news has soothed investors, who were on edge as US President Donald Trump threatened to “take over” the country and prompted Iranian negotiators to leave the talks at some point. The uncertainty about the outcome of the talks sent WTI Oil prices to highs near $78.00 area at the weekly opening times.
Technical Analysis: The channel bottom, near $71.00, might attract bears WTI Oil trades at $75.20, holding in the lower half of the descending channel with momentum indicators hinting at a prevailing bearish impetus. The 4-hour Relative Strength Index (RSI) remains capped below the midline, although the Moving Average Convergence Divergence (MACD), in positive territory, suggests that the negative momentum might have eased somewhat. Session lows are at $74.88, guarding the path towards Friday’s low at the $72,80 area.