Oil prices fall to a three-month low on easing supply concerns, breaking key technical levels and shifting momentum to sellers.
West Texas Intermediate crude oil slid $3.50 to $87.70, its lowest level since May 29, as traders unwound geopolitical risk premiums. The decline accelerated after breaking below an upward-sloping trend line near $88.10, reinforcing a bearish technical bias.
The sell-off began Monday when WTI fell below its 200-hour moving average at $91.77 and 100-hour moving average at $92.77. The session low reached $87.37, with the next support at $86.55, the May 29 low. Despite comments from Israel’s military and U.S. energy officials, markets focused on improving supply flows rather than escalation risks.
The NASDAQ and S&P 500 erased earlier gains, trading in negative territory as oil’s decline weighed on energy shares. Treasury yields remained stable, suggesting limited spillover into broader risk sentiment.